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Kenya’s instant payment network Pesalink has partnered with the Pan-African Payment and Settlement System (PAPSS) to enable round-the-clock cross-border bank transfers settled in local currencies, the firms said on Tuesday.
The deal allows PAPSS participants to send funds instantly into banks and mobile money operators on the Pesalink network in Kenya, reducing reliance on correspondent banking and foreign reserve currencies.
PAPSS, an initiative of the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the AfCFTA Secretariat, facilitates payments between African countries. Under the agreement, Pesalink becomes a technical connectivity provider, linking more than 80 Kenyan banks, SACCOs, fintechs and telcos to over 160 commercial banks and fintechs on the PAPSS platform.
Cross-border payments in Africa remain costly and slow. The World Bank says remittance costs within Africa average 7–8%, above the global average, with settlement often taking several business days.
“For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential,” said Mike Ogbalu III, PAPSS chief executive.
Pesalink CEO Gituku Kirika said the partnership would allow Kenyan banks to offer faster and cheaper cross-border payments, supporting regional trade and integration.