Pesalink has partnered with the Pan-African Payment and Settlement System (PAPSS) to facilitate instant, 24/7 cross-border bank-to-bank transfers in local African currencies, marking a significant step toward deeper regional financial integration.
The collaboration connects more than 80 Pesalink network participants in Kenya to over 160 banks participating in PAPSS across the continent. The integration enables individuals, businesses and SMEs to send and receive payments across African borders without relying on hard currencies such as the US dollar as intermediaries.
Pesalink, widely regarded as Kenya’s de facto instant payment rail, allows real-time transfers between bank accounts domestically. By linking with PAPSS, the system extends this functionality beyond national borders, supporting settlement in local currencies and reducing the friction typically associated with cross-border transactions.
PAPSS was established to streamline intra-African trade payments by creating a centralized infrastructure for clearing and settlement among African banks. The system is backed by continental financial institutions and is designed to reduce dependency on correspondent banking networks outside Africa, which often add cost, delays and foreign exchange exposure.
The new integration is expected to simplify cross-border commerce for SMEs, which frequently face high transaction fees and currency conversion challenges when trading within the region. By enabling direct settlement between participating banks, the platform aims to lower transaction costs, accelerate processing times and enhance transparency.
For Kenya, the move strengthens its position as a regional financial hub. The country already boasts a mature digital payments ecosystem, driven by mobile money adoption and real-time banking infrastructure. Extending instant payment capability beyond domestic borders aligns with broader goals of boosting trade within Africa under the African Continental Free Trade Area framework.
The partnership also underscores growing momentum behind localized currency settlement. Traditionally, cross-border payments in Africa have often been routed through foreign currencies, particularly the US dollar or euro. This structure can introduce exchange rate risk, liquidity constraints and additional compliance layers. Local currency settlement through interoperable payment rails is intended to address these inefficiencies.
From a technical standpoint, interoperability between Pesalink and PAPSS expands network effects on both sides. Kenyan banks gain access to a wider continental payment ecosystem, while PAPSS strengthens its reach into one of Africa’s most digitally advanced financial markets.
Analysts view the integration as part of a broader push to modernize Africa’s payment infrastructure. Efficient cross-border payment systems are seen as foundational to unlocking intra-African trade, improving capital flows and supporting financial inclusion across the continent.
For businesses, particularly SMEs engaged in import-export activities, the ability to execute instant transfers across borders in local currencies could improve cash flow management and reduce operational uncertainty. For individuals, remittances and regional transactions may become faster and more predictable.
As adoption scales, the success of the partnership will depend on bank participation, liquidity management across currencies and user awareness. However, the linkage between Pesalink and PAPSS represents a tangible milestone in the evolution of Africa’s cross-border financial architecture.
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