Abuja: The African Export-Import Bank (Afreximbank) has launched the Pan-African Payment and Settlement System (PAPSS) credit and debit card in collaboration with MercuryPaY, a digital payment solutions provider. This significant development took place during the 2025 Afreximbank Annual Meetings held in Abuja, Nigeria, marking a pivotal step towards financial integration across the continent.
According to Ghana News Agency, the PAPSS card facilitates transactions in national currencies across 16 operational countries, eliminating the need for costly currency conversions through external intermediaries. This first-ever Pan-African card scheme is anticipated to transform how individuals, small and medium-sized enterprises (SMEs), and large businesses conduct transactions across Africa.
Professor Benedict Oramah, the outgoing president of Afreximbank, highlighted the card's potential to address challenges related to high transaction fees and adverse exchange rates, which have historically impacted African economies. The system aims to retain data and value within the continent, enhancing retail payments, sovereignty, and interoperability to support seamless cross-border trade.
Currently, 160 commercial banks are integrated into PAPSS, which has processed US$68 billion in trade payments and facilitated US$33 billion in Letter of Credit issuances and confirmations for corporates and banks in over 30 countries since its 2020 launch. Prof Oramah explained the card's capability, allowing cross-border investments and transactions in local currencies, which he believes will gradually lead to convergence in Africa's capital and financial markets.
The PAPSS infrastructure integrates 42 distinct payment systems across Africa, facilitating real-time payments in local currencies and significantly reducing transaction costs. Supported by a US$3 billion clearing and settlement fund from Afreximbank, PAPSS operates in collaboration with the African Continental Free Trade Agreement (AfCFTA) Secretariat and the African Union Commission.
A notable feature of the PAPSS ecosystem is the African Currency Marketplace, which is now operational, enabling the trading of African currencies. This marketplace addresses the issue of trapped funds in different African countries, offering a solution for businesses to repatriate earnings without relying on external financial institutions.
The expansion of PAPSS beyond Africa has gained traction with the endorsement of Caribbean Community (CARICOM) central banks for implementing the system within their payment networks. This development may lead to an integrated payment network between Africa and the Caribbean, fostering a vast financial ecosystem across the two regions, as envisioned by Afreximbank.
