Challenges such as high transaction costs and opaque exchange rates have been prevalent in Africa over the last few years, meaning that establishing strong cross-border payment avenues has been tough. Operationalising a partnership that was agreed in 2022, Onafriq, the cross-border payments solution provider, and Pan-African Payment and Settlement System (PAPSS), the centralised financial market infrastructure across Africa, have launched a new cross-border payment service.
Kicking off in Ghana, the initial pilot will mean banks partnering with PAPSS and Onafriq’s authorised fintech, mobile money service providers, and traditional partners in the country can enable their customers to send and receive money directly into mobile wallets and bank accounts. The new launch will improve financial interoperability by making transactions faster, more convenient, and cost-effective – the primary emphasis of the new service will be on small and medium enterprises (SME) and retail transactions.
Dare Okoudjou, founder and CEO of Onafriq, said: “We are excited to be taking another step in operationalising our important partnership with PAPSS to bring this innovative cross-border payment solution to our users. This service is not just about convenience; it brings people together and enhances economic activity between Ghana and the region.
“We are dedicated to making financial services accessible to everyone and are proud to be at the forefront of this transformation. African borders are starting to matter less; this is Onafriq‘s goal.”
Accelerating access to financial services
The six-month pilot program – approved by the Bank of Ghana (BoG) – will allow Onafriq and PAPSS to assess transaction flows, user adoption, and foreign exchange performance while delivering better rates and more accessible services to customers.
As part of this pilot, Onafriq is leveraging PAPSS infrastructure and regulatory coverage to offer its fintech, mobile money, and traditional partners in Ghana unparalleled access to cross-border payment capabilities. By participating in this arrangement, these partners benefit from the safeguards and efficiency of PAPSS’s framework. The African Export-Import Bank (Afreximbank) serves as the settlement entity, ensuring trusted and timely settlement between parties.
Mike Ogbalu III, CEO of PAPSS, added: “Today marks a significant milestone in our journey towards a more integrated financial landscape in Africa. Our partnership with Onafriq represents a commitment to empowering SMEs and individuals by simplifying cross-border transactions. We believe this service will help reduce the liquidity burden on participants while fostering financial inclusion across the region.”
This launch deepens the long-standing collaboration between Onafriq and PAPSS and reinforces their shared commitment to building infrastructure that empowers African businesses, individuals, and financial institutions across the continent. The service will soon be available on mobile money and other fintech-based wallets.
