Pesalink & PAPSS partner to boost cross-border payments in local currencies in Africa

Kenya’s Pesalink and the Pan-African Payment and Settlement System (PAPSS) have officially joined forces.

The core of this partnership is the ability to settle transactions in local currencies. Traditionally, a transfer from Kenya to Ghana might require converting Shillings to US Dollars, and then Dollars to Cedi, a process that racks up fees and exposes businesses to exchange rate volatility.

By linking Pesalink’s network of over 80 Kenyan participants (including banks, telcos, and SACCOs) with the 160+ commercial banks on the PAPSS platform, the two entities are bypassing complex correspondent banking routes.

The shift promises to address two critical pain points identified by the World Bank:

• Cost: Reducing the average 7-8% fee currently charged for intra-African remittances.
• Speed: Replacing the standard 3-to-7-day settlement period with instant, real-time transfers.

PAPSS is a flagship initiative of Afreximbank, the African Union, and the AfCFTA Secretariat. By positioning Pesalink as a Technical Connectivity Provider, the partnership provides the “digital plumbing” necessary for the African Continental Free Trade Area to actually function for small and medium enterprises (SMEs).

“For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential,” noted Mike Ogbalu III, CEO of PAPSS. “We are already seeing greater adoption by opening more channels for seamless, local-currency payments across Africa.”

For the average Kenyan entrepreneur or regional trader, the benefits are practical and immediate:

Gituku Kirika, CEO of Pesalink, emphasized that this is a win for the digital economy: “Kenyan banks will now be able to offer faster, cheaper cross-border payments… helping their customers grow more regional trading relationships.”