KCB Group has integrated the Pan-African Payment and Settlement System (PAPSS) into its systems to allow its customers will to enjoy faster settlement times, reduced costs associated with currency conversion, and increased access to new markets across Africa.
PAPSS is a centralized financial market Infrastructure developed by the African Export-Import Bank (Afreximbank) to facilitate cross-border payments and trade transactions, reducing both costs and processing times. PAPSS puts KCB at the forefront of facilitating trade across Africa as it continues to play a pivotal role in driving Africa’s economic transformation and reinforcing its position as a leading financial institution in the continent.
“We want to play a bigger role in catalyzing trade and payments in Africa and beyond, leveraging our digital capabilities and regional footprint. Our entry into PAPSS aligns perfectly with our strategy of supporting economic growth in Kenya and across Africa by facilitating seamless financial transactions,” said KCB Group CEO, Paul Russo.
KCB has a presence in 7 East African countries and its customers will now have access to vast economic opportunities that will deliver multiple advantages and efficiencies especially when conducting intra-African trade payments.
“With PAPSS, KCB customers will experience unprecedented ease in cross-border transactions, paving the way for enhanced trade opportunities and economic growth across the continent,” said PAPSS CEO, Mike Ogbalu.
PAPSS will deliver multiple advantages and efficiencies to intra-African trade payments that include a reduction in the duration and time variability of cross-border payments across Africa, support real-time payments, decrease the liquidity requirements of commercial banks for cross-border payments, remove transaction value limits, enable commercial banks to set the applicable exchange rates and strengthen oversight of cross-border payment systems by Central Banks.
The Pan-African Payment and Settlement System (PAPSS) is expanding, now including 15 Central Banks, over 150 commercial banks, and 14 switches across Eastern, Western, Northern, and Southern Africa. Its adoption has surged as financial institutions integrate PAPSS into their digital platforms, promoting greater access to services and economic integration. The network expects to add more Central Banks soon, broadening citizen benefits from the African Continental Free Trade Area (AfCFTA).
KCB is the first bank in East Africa to join the system.
Mr. Michael Eganza CBK Director, Banking & Payment Services said: “The Central Bank of Kenya is keen to enable financial players to bolster the payments ecosystem for an opportunity to enable cross-border transactions. We are increasingly looking at reinvigorating the regulatory regime to promote innovation and deepen financial inclusion within the industry.”
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