ABC Bank goes live on Pan-African payment system
The service allows individuals and businesses to make near-instant payments from their ABC Bank accounts to recipients at more than 190 participating banks in the PAPSS network.
Nairobi, Kenya - African Banking Corporation (ABC Bank) has launched its services on the Pan-African Payment and Settlement System (PAPSS), enabling customers to transfer funds across 28 African nations. The system permits individuals and businesses to make immediate payments from their ABC Bank accounts to recipients at over 190 participating banks within the PAPSS network.
The innovation is anticipated to lower the expenses and duration linked to conventional international money transfers. Users can deposit funds in Kenyan shillings, with recipients receiving the money in their home currency, or deposit US dollars, allowing the recipient to receive the payment in US dollars. However, the latter option necessitates both the sender and recipient to have US dollar bank accounts.
During the official announcement of the go-live, ABC Bank's Managing Director, Apollo Njoroge, emphasized the system's potential to expedite and economize intra-African transactions. Njoroge stated, "Traditionally, intra-African payments were facilitated through correspondent banks outside the continent, leading to slower and costlier transfers. By joining the PAPSS network, our customers can now benefit from affordable, near-instant payments."
Afreximbank, in collaboration with the African Continental Free Trade Area (AfCFTA) Secretariat, developed the PAPSS system. The network presently links 28 African countries, more than 190 commercial banks and fintechs, and 16 payment switches. Additional countries and financial institutions are anticipated to join the network in the future. ABC Bank highlighted that the integration will bolster regional commerce by simplifying payments across African markets for both businesses and individuals.
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