Kenya’s instant payment network, Pesalink, has joined forces with the Pan-African Payment and Settlement System (PAPSS) to simplify cross-border transactions and accelerate regional financial integration.
The partnership allows instant, 24/7 bank-to-bank transfers in local currencies, reducing the reliance on foreign exchange and complex correspondent banking arrangements.
Under the agreement, more than 80 Kenyan banks, fintechs, SACCOs, and telecom operators on the Pesalink network will now connect seamlessly with over 160 commercial banks and fintechs across Africa on the PAPSS platform. The move promises to make payments easier, faster, and more affordable for individuals, SMEs, and larger businesses engaging in intra-African trade.
Cross-border payments have historically been costly and slow. According to the 2023 World Bank Remittance Prices report, transferring money within Africa typically costs 7–8% of the total amount—higher than the global average of 6–7%—and can take three to seven business days to settle.
By enabling local-currency settlements, the Pesalink–PAPSS collaboration is expected to cut costs, reduce delays, and strengthen regional commerce.
Speaking at the partnership signing in Nairobi, PAPSS CEO Mike Ogbalu III emphasized the importance of local partnerships.
“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,” he said.
Pesalink CEO Gituku Kirika highlighted the benefits for Kenyan businesses. “Kenyan banks will now be able to offer faster, cheaper cross-border payments. They will help their customers grow more regional trading relationships and thrive in a more integrated digital economy,” he said.
For East African traders and SMEs, the partnership signals a shift toward a more connected African market, where sending and receiving money across borders is no longer a cumbersome, costly process.
As the continent continues to embrace digital finance, initiatives like Pesalink–PAPSS could reshape how African businesses trade with each other—quickly, efficiently, and in local currencies.