Intra-African payment rails are key to cutting cross-border friction, says Grey

Grey, a company focused on intra-African payments, aims to reduce cross-border friction, claims co-founder and CEO Idorenyin Obong. At a press briefing, he stated that Grey is constructing payment connections across African markets to enhance the dependability of cross-border transactions and secure the necessary foreign currency for settlement.

Obong highlighted two key issues: ensuring money arrives on time and obtaining sufficient currency for the transfer. Currently, most transfers between African currencies pass through the US dollar, but Grey now converts directly between some African currencies, eliminating the need for a middleman. This shift comes after Grey's recent product launches: Grey Business, a multi-currency account for startups and small businesses, in February, and the addition of local-currency deposits in Ghana and Kenya in July.

These developments align with regional efforts to improve payment integration. The Central Bank of Nigeria is exploring closer regional payments integration, including links to the Pan-African Payment and Settlement System (PAPSS), which would enable African countries to settle cross-border payments in their own currencies. This integration would eliminate the need for intermediaries and the first costly step in intra-African trade.