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Pesalink, Kenya’s de facto instant payment platform, has partnered with the Pan-African Payment and Settlement System (PAPSS) to streamline cross-border transfers and accelerate regional financial integration, the two organisations said on Thursday.
The partnership will allow 24/7 instant cross-border payments from PAPSS participants into banks and mobile money operators within Kenya’s Pesalink network, with all transactions settled in local currencies.
The move aims to reduce reliance on correspondent banking structures and foreign reserve currencies.
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PAPSS, developed by the African Export-Import Bank in collaboration with the African Union and the AfCFTA Secretariat, enables cross-border payments between African states.
With the new arrangement, Pesalink becomes a Technical Connectivity Provider, linking more than 80 Kenyan banks, fintechs, SACCOs and telecom operators to over 160 commercial banks and fintechs on the PAPSS platform.
Cross-border payments in Africa remain costly and slow. According to the World Bank’s 2023 Remittance Prices report, sending money across African borders costs on average 7–8 percent of the transaction value—higher than the global average of 6–7 percent—with settlement times typically ranging from three to seven business days.
The Pesalink–PAPSS partnership is expected to cut costs, shorten settlement periods and improve efficiency for individuals, SMEs and larger businesses sending money across African markets.
Speaking at the signing ceremony held at Pesalink offices in Nairobi, PAPSS CEO Mike Ogbalu III said: “For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential.
Pesalink is the first switch we’ve piloted for transaction termination in Kenya, and we are already seeing greater adoption by opening more channels for seamless, local-currency cross-border payments across Africa.”
Pesalink Chief Executive Officer, Gituku Kirika, said Kenyan banks would now be able to offer faster and cheaper cross-border payments.
“They will be helping their customers grow more regional trading relationships and thrive in a more integrated digital economy,” he said.
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