PAPSS Prepares for Scale as Continental Payment Network Expands Across Thirty African Markets

The Pan-African Payment and Settlement System is preparing to accelerate adoption and transaction growth across Africa as it enters the next phase of its strategy, following significant expansion of its network and strong growth in payment volumes and values. Speaking at a media briefing in Lagos, Mr Mike Ogbalu III, Chief Executive Officer of PAPSS, said the platform now operates in more than 30 African countries across all five regions of the continent. It connects 24 national and regional central banks, more than 200 commercial banks and payments service providers, and 16 switches. Through strategic partnerships, PAPSS also provides a termination footprint covering more than 300 financial institutions.

During 2026 alone, around 10 additional countries have joined the PAPSS ecosystem, with further expansion expected before the end of the year. Mr Ogbalu noted that the first phase of the initiative has been about building, connecting and establishing trust. Infrastructure has been successfully established and expanded across Africa to demonstrate tangible benefits. As the platform transitions into its next phase from 2027, the primary focus will increasingly shift toward activating that network, deepening adoption and taking transaction growth to scale across participating regional markets.

Usage of PAPSS has accelerated significantly across participating corridors. Between comparable periods in 2025 and 2026, transaction volumes across the network increased by approximately 1,000 per cent, while transaction values increased by approximately 120 per cent. Nigeria remains a significant contributor to that growth, recording an approximately 1,100 per cent increase in transaction volumes and a 125 per cent increase in transaction values over the same period. PAPSS transactions have also demonstrated cost savings of between 92 and 95 per cent per transaction, alongside a 99.99 per cent reduction in processing time and up to 80 per cent reduction in foreign exchange requirements.

The system currently provides three major solutions, which include the PAPSS Instant Payment System, the PAPSS African Currency Marketplace and PAPSSCARD. Additional new solutions are currently being piloted and are expected to be announced later in 2026. The next phase of growth and operational integration will be discussed further at PAPSS COWRY 2026, the annual payments conference scheduled for 26 and 27 November in Addis Ababa, Ethiopia, which is being co-hosted with the National Bank of Ethiopia.

Why This Matters

The rapid expansion of the Pan-African Payment and Settlement System addresses historical inefficiencies that have long burdened cross-border commerce across the continent. By connecting diverse national and regional central banks, commercial banks and payment switches, the infrastructure directly tackles the structural friction caused by reliance on third-party foreign currencies for intra-continental trade. The reported reductions in foreign exchange requirements and processing times illustrate a fundamental shift in how capital and liquidity can move through official channels, bypassing traditional settlement bottlenecks.

Scaling this network touches directly upon broader ambitions of regional integration and economic resilience. When commercial institutions and central banks align around a unified settlement framework, the dependency on external correspondent banking networks diminishes. This architectural shift protects regional economies from external currency shocks and transaction delays, creating a more predictable environment for trade under continental frameworks. As participation broadens to include hundreds of financial entities, the systemic impact extends to every sector dependent on reliable, low-cost cross-border liquidity.

Opportunities

• Commercial Banks: Integration with the PAPSS network to offer lower-cost cross-border remittance and trade settlement services to corporate and retail clients.
• Fintech Service Providers: Collaboration on API connectivity and new payment channels to bring PAPSS solutions into everyday consumer and business applications.
• Payment Switches: Technical alignment to expand the reach of the 16 existing switches and incorporate additional national switching infrastructure into the continental ecosystem.
• Enterprise Operators: Utilization of priority payment corridors and multi-currency mechanisms to streamline regional supply chain transactions and reduce foreign exchange costs.

Moto Seen Africa - Africa's View, Seen Clearly

#MotoSeenAfrica #SeenAfrica #SeenNetwork #AfricasView #SeenClearly #SeenInsights #Fintech #CrossBorderPayments #Banking #Trade #Africa