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The Pan African Payment and Settlement System (PAPSS) has signed an agreement with Ecobank Group in bid to facilitate the bank’s settlement transactions across borders.
Under the Memorandum of Understanding (MoU), this will also facilitate payment transactions of all its subsidiaries through PAPSS.
With this, PAPSS Chief Executive Officer, Mike Ogbalu, said: “Having the cooperation of Ecobank Group, one of the major banks in Africa, is a huge honour, but more importantly, it shows that PAPSS is the payment system that will transform the way that people in Africa conduct cross-border transactions.
“To this end, I appreciate the bank’s management for having faith in PAPSS.”
Under this partnership, the Group and its subsidiaries will gain access to PAPSS’s cutting edge platform, enabling them to seamlessly settle cross-border transactions.
It further stated that by eliminating the complexities associated with traditional payment systems, the bank will be able to provide its customers with a more convenient and streamlined experience, facilitating increased trade and economic cooperation across Africa.
The Group Chief Executive Officer, Jeremy Awori said on Monday in Accra that the partnership was essential for the delivery and success of the African Continental Free Trade Area (AfCFTA) and for the financial integration and economic development of the continent.
“We are committed to the success of PAPSS and are pleased to bring on board our payments and collections expertise from our African coverage of 33 markets,” Awori said.
He added that this partnership would ensure that all partner banks and PAPSS can expand their reach rapidly and enable greater and wider intra-Africa trade.
“Today, we begin to change and rewrite the narrative of low intra-African trade by removing the barrier to efficient and instant payments and collections in African currencies,” Awori said.
PAPSS was established by the African Export-Import Bank (Afreximbank) and the Africa Continental Free Trade Area (AfCFTA) Secretariat, to provide a secure and efficient channel for processing cross-border payments, ensuring speed, affordable cost, and reliability in order to facilitate intra-African trade.
During the ceremony, PAPSS also introduced the Commercial Bank Settlement Model, a new settlement model which offers the commercial banks a window to open and fund their own settlement accounts at Afreximbank and manage their own liquidity according to their banking needs.
By leveraging the capabilities of PAPSS, Ecobank affiliates in 33 countries with over 32 million customers, will streamline and expedite the transfer of funds while ensuring transparency and compliance under the Regulators supervision.
Additionally, the partnership aligns with the African Union’s vision of promoting intra-African trade and economic integration through enhanced financial connectivity.
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