Papalink and Paps have collaborated to facilitate immediate, local-currency cross-border bank payments across the African continent.

In line with this development, Pesalink, a Kenya-based instant payment network, has entered into a partnership agreement with Pan-African Payment and Settlement System (Papss) to enable real-time, local-currency cross-border payments between Kenya and other African regions.

As per the agreement, Pesalink will serve as a Technical Connectivity Provider on the Papss platform. This connection links more than 80 Kenyan banks, fintechs, SACCOs, and telcos to over 160 commercial banks and fintechs participating in Papss. The integration supports instant, 24/7 bank-to-bank and mobile money transfers settled in local currencies, minimizing reliance on foreign reserve currencies and correspondent banking networks.

Solving persistent cost and speed challenges

The announcement highlights that cross-border payments within Africa are among the most expensive and slowest globally. According to the World Bank’s 2023 Remittance Prices report, sending money across African borders costs an average of 7–8% of the total transaction value, higher than the global average of 6–7%. Settlement periods can stretch from three to seven business days. Designed to address these issues, the Pesalink–Papss integration aims to reduce both the cost and time involved in these transactions for individuals, SMEs, and businesses operating across borders.

The agreement represents Papss’s first piloting of a national switch for transaction termination in Kenya, as noted by an official from Papss cited in the announcement. The partnership is aimed at expanding access to cross-border payment channels throughout the continent by integrating national and private switches into the Papss infrastructure.

For Kenyan financial institutions, this integration means they can offer cross-border payment services to their customers through existing Pesalink rails without establishing separate correspondent relationships. The partnership is also intended to support broader efforts under the AfCFTA framework aimed at increasing intra-African trade volumes. Both entities will continue to prioritize meeting the needs, preferences, and demands of clients and users in an ever-evolving market while maintaining compliance with industry regulations.