ABC Bank Joins PAPSS, Opens Faster Payments to 28 African Countries
African Banking Corporation (ABC Bank) has gone live on the Pan-African Payment and Settlement System (PAPSS), allowing its customers to send and receive payments across 28 participating African countries.
The move is expected to make cross-border transactions faster and more affordable for individuals and businesses by enabling near-instant payments directly from ABC Bank accounts to recipients at more than 190 participating banks within the PAPSS network.
The new service is set to reduce the time and costs associated with traditional international money transfers, which have historically relied on multiple intermediaries and correspondent banks before funds reach their final destinations.
ABC Bank customers will be able to send money in Kenyan shillings, with recipients receiving the funds in their respective local currencies.
Customers can also send US dollars where both the sender and recipient maintain US dollar-denominated bank accounts, allowing the beneficiary to receive the funds in US dollars.
The introduction of the service comes as African financial institutions increasingly seek to simplify cross-border payments and support greater economic integration across the continent.
Speaking during the go-live announcement, ABC Bank Managing Director Apollo Njoroge said joining PAPSS would help address some of the longstanding challenges associated with intra-African payments.
“Historically, intra-African payments were routed through correspondent banks outside the continent, resulting in slower and more expensive transfers. By joining the PAPSS network, our customers can now make affordable, near-instant payments,” Njoroge said.
The PAPSS platform was developed by the African Export-Import Bank (Afreximbank) in collaboration with the African Continental Free Trade Area (AfCFTA) Secretariat.
The system is designed to facilitate cross-border payments in African currencies, reducing dependence on international correspondent banking arrangements and helping businesses conduct transactions more efficiently across national borders.
PAPSS currently connects 28 African countries, more than 190 commercial banks and fintech companies, as well as 16 payment switches.
For Kenyan businesses engaged in regional trade, the connection could provide an alternative to traditional international payment channels, particularly when dealing with suppliers, customers and business partners in participating African markets.
The ability to initiate payments from Kenyan shilling accounts while allowing recipients to receive funds in their local currencies could also reduce some of the currency conversion and settlement challenges associated with cross-border transactions.
Small and medium-sized enterprises stand to benefit from the development as they increasingly expand their operations beyond domestic markets. Faster settlement of invoices and payments could improve cash-flow management for businesses trading across Africa.
For individuals, the service provides another channel for sending money to beneficiaries in participating countries without relying entirely on conventional international transfer arrangements.
ABC Bank’s integration into PAPSS also comes as African governments and financial institutions push for greater use of local currencies in intra-African trade.
The broader objective is to support the implementation of the AfCFTA by making payments between African countries more efficient and reducing some of the financial barriers that can discourage businesses from trading across borders.
Traditional cross-border transactions can involve correspondent banks located outside Africa, increasing the number of intermediaries involved in a payment. Such arrangements can add costs and lengthen settlement times.
PAPSS seeks to address this challenge by providing a continent-wide payment infrastructure connecting participating financial institutions.
ABC Bank’s participation therefore expands access to the system for Kenyan customers and strengthens the bank’s cross-border payment offering as regional trade continues to grow.
The bank said the service will enable customers to make payments through their ABC Bank accounts, while recipients can access funds through participating banks connected to the PAPSS network.