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Kenya’s de facto instant payment network, Pesalink, has officially partnered with the Pan-African Payment and Settlement System (PAPSS) in a strategic move to simplify cross-border transactions and accelerate regional financial integration.
The partnership enables instant, 24/7 cross-border payments from PAPSS participants directly into banks and mobile money operators within the Pesalink network in Kenya.
Crucially, all transactions will be settled in local currencies. Consequently, this shift reduces the need for complex correspondent banking structures and diminishes the long-standing reliance on foreign reserve currencies, which often complicates trade within the continent.
As a result of this agreement, Pesalink now serves as a Technical Connectivity Provider.
This means that more than 80 Kenyan banks, fintechs, SACCOs, and telco participants on the Pesalink network will be seamlessly connected to over 160 commercial banks and fintechs already on the PAPSS platform.
PAPSS itself is an initiative of the African Export-Import Bank (Afreximbank), developed in collaboration with the African Union and the AfCFTA Secretariat to facilitate smoother financial flows between African nations.
The urgency of this integration is highlighted by the high cost of moving money within Africa.
According to the 2023 World Bank Remittance Prices report, sending money across African borders incurs an average cost of 7-8% of the total value, a figure that sits above the global average of 6–7%.
Furthermore, traditional settlements can currently take anywhere from three to seven business days.
By streamlining these processes, the Pesalink–PAPSS partnership aims to reduce costs and significantly speed up settlements for individuals and SMEs.
Speaking during the partnership signing at Pesalink’s offices in Nairobi, PAPSS CEO Mike Ogbalu III emphasized the importance of local cooperation.
“For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential,” he stated.
“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.”
In conclusion, Pesalink CEO Gituku Kirika noted that the deal would empower the local banking sector.
“Kenyan banks will now be able to offer faster, cheaper cross-border payments,” Mr. Kirika said. “They will be helping their customers grow more regional trading relationships and thrive in a more integrated digital economy.”