CEM REPORT, FINANCE | Nigeria has emerged as the first country in Africa to record the first successful transaction through the Pan-African Payment and Settlement System (PAPSS).
The transaction was made possible by the Nigeria Inter-Bank Settlement System Plc (NIBSS) and the successful transaction occurred between the Ghana Commercial Bank and First Bank of Nigeria Plc, Thisday reports.
The feat recorded by PAPSS in Africa was in collaboration with the Africa Export-Import Bank (Afreximbank) in partnership with the African Union (AU) and the AfCFTA.
This comes after the payment gateway was conceptualised in January 2022, in a bid to promote and aid the African Continental Free Trade Area (AfCFTA).
The payment platform aims at simplifying transactions by transforming and facilitating payment, clearing and settlement for cross-border trade across Africa.
The platform avails the opportunity for a customer in one African country to pay in their currency, while the beneficiary in another country receives value in their local currency, serving as a cross-border payments and settlement platform for the African continent.
PAPSS is available leveraging the NIBSS Instant Payment platform for commercial banks, Fintechs, payment service providers, card schemes, and other payment industry players to integrate for Intra-African Trade and other economic activities among African countries recognising over 41 currencies and it enables instant, diaspora payments in local currencies between African markets.
It was also designed to reduce transaction time and cost of cross-border financial services by curbing dependency on hard currency and major unknown transaction delays.
Banks at various stages of connection through NIBSS for the PAPSS integration, it was gathered that deposit money banks are currently undergoing certification, integration, and migration to the PAPSS will Go-live and also consummate live transactions in the coming weeks.