KCB Group and Bank of Kigali launch Pan-African Payment and Settlement System (PAPSS), enabling seamless and affordable cross-border payments across Africa
Pan-African Payment and Reconciliation System (PAPSS) (PAPSS) initiated by AFREXIMBANK (www.afreximbank.com) worked with the African Union Commission (AUC) and the African Continental Free Trade Area (AFCFTA) Secretariat to achieve significant milestones in its journey to enhance financial integration and economic prosperity in Africa when the KCB Group officially launched the platform in Kenya and Rwanda.
Launch, Kigali Bank launched at the age of 26Th February and KCB are 27 years old in NairobiTh In February, the two banks became the first in their respective countries, integrating a transformative system into their operations, highlighting their commitment to advocate for intra-Africa trade and supporting the AFCFTA efforts.
KCB and Kigali customer banks will now be able to send and receive cross-border payments using PAPS. The service is fully accessible through the bank’s mobile app and branch network, allowing seamless transactions across the African border. With this launch, businesses and individuals can benefit from faster, more cost-effective and secure payments without relying on journalist banks or third-party currencies.
Emphasize the benefits of PAPS for clients of KCB and KIGALI Bank, Mike Ogbalu III, CEO paps“Customers will experience faster, more cost-effective and secure cross-border transactions from banks’ mobile apps or through their branches. Businesses can make more freer and competitive transactions by eliminating the need for journalist banks outside the continent and eliminating dependence on third-party currencies. This shift will aim to unlock new opportunities for trade and investment, allowing African SMEs to enter wider markets and contribute to local economies.”
Mr. Ogbalu III expresses deep gratitude to KCB and Kigali Bank Paul Russo, CEO of KCB Groupand Diane Karusisi, CEO of Dr.Kicali Bank“because of their “visionary leadership and unwavering commitment.”
He noted that the PAPS network began in 2022, which began its pilot phase throughout the West African Currency Zone (WAMZ), has successfully grown to include 15 central banks, more than 150 commercial banks and 14 switches, adding that the current expansion is “a goal toward our entire continent that can bring the actions of every African citizen into convergence, thus benefiting invalid grocery stores.
Mr Ogbalu III continued: “As 16% of total African trade occurs within the region, the launch of PAPS in Kenya and Rwanda is an important step in unlocking the potential of the continent,” Mr Ogbalu III continued. “We believe that this innovative financial market infrastructure will promote greater trade opportunities, economic growth and empowerment between East African countries and the rest of Africa.”
He called on other central banks and commercial banks in eastern East Africa to join the PAPSS family in order to play a key role in the AFCFTA as it strives to build a more prosperous and unified Africa.
KCB Group CEO Paul Russo said about milestones: “We hope to play a greater role in catalyzing trade and payments in Africa and beyond, leveraging our digital capabilities and regional footprint. We enter PAPSS by promoting seamless financial transactions, fully in line with our strategy to support economic growth in Kenya and Africa as a whole.”
Diane Karusisi, CEO of Dr.Kicali Bankhighlighting the importance of partnership: “The system allows people to send money quickly. For example, if someone sends Rwanda France from Rwanda, it can arrive in Ghana in local currency. The system converts the currency to meet local requirements. Now, Rwanda entrepreneurs can get payments from the Rwandan franc or any member state immediately. The service is fast, affordable and reliable.”
Distributed by Apo Group on behalf of Afreximbank.
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About PAPS:
Pan-African Payment and Settlement System – PAPSS is a centralized financial market infrastructure that securely stabilizes currency flows across the African borders, minimizes risks and contributes to financial integration throughout the region. PAPSS works with central banks in Africa to provide payment and settlement services and contact “participants” with commercial banks and licensed payment service providers in the region. Afreximbank and the African Union (“AU”) first announced PAPS at the 12th African Union Summit of the African Union held on July 7, 2019 in Niahmi, Niger Republic, and thus adopted PAPS as a key tool for the implementation of the African Continent Free Trade Agreement (AFCFTA) . In addition, at the 13th (13th) extraordinary meeting held on 5 December 2020, the General Assembly of the African Union directed Afreximbank and AFCFTA secretariat to finalize the Pan African Payment and Settlement System (PAPSS). The 35th General Session of the AU Assembly further directed AFCFTA and AFREXIMBANK to deploy systems to cover the entire continent. PAPSS was officially launched in Accra, Ghana on January 13, 2022, so it is available for public use.
For more information, visit: www.papss.com.
