PAPSS Africa Payments: Why 1,000% Growth Matters
PAPSS Africa payments are becoming one of the most important stories in the continent’s digital economy.
The Pan-African Payment and Settlement System says transaction volumes have grown by more than 1,000% year-on-year, as more countries, central banks and financial institutions connect to the platform. The network now connects about 30 countries, 26 central banks and more than 200 financial institutions, with a target of reaching around 38 countries by the end of 2026.
That is a major signal. Africa’s payment problem has never been only about apps. It is also about infrastructure, currencies, settlement and the high cost of moving money across borders.
PAPSS is trying to solve that problem from the inside.
Instead of forcing African businesses to depend heavily on dollars, correspondent banks and slow international rails, PAPSS wants to make local-currency payments across Africa faster and easier.
For Blockwisely readers, the big question is simple: can Africa finally build a payment network that matches its trade ambitions?
What Is PAPSS?
PAPSS stands for the Pan-African Payment and Settlement System.
It is a cross-border payment system developed and operated by Afreximbank in collaboration with the AfCFTA Secretariat. Its goal is to help money move across African countries in local currencies.
In simple terms, PAPSS allows a person or business in one African country to send money to another African country without first converting everything through a third foreign currency.
For example, a Nigerian business could pay in naira while a Ghanaian supplier receives cedis. The payment and settlement process happens through the participating financial system.
PAPSS says this model is designed to address long-standing problems in African cross-border payments, including speed, cost, reliability and dependence on hard currency.
Why PAPSS Africa Payments Are Growing Now
PAPSS has moved from infrastructure building to adoption.
Its latest growth figures suggest that more businesses and financial institutions are beginning to use the system. According to PAPSS CEO Mike Ogbalu III, transaction volume has risen by more than 1,000% year-on-year, while transaction value has increased by about 125% since operations began in 2022.
That growth matters because payment networks become more useful when more participants join. A cross-border rail only works well if banks, fintechs, switches, central banks and users can all connect to it.
PAPSS is also expanding its reach. It currently connects 30 countries and wants to cover every African country within five years.
This is no longer just a policy project. It is becoming a real payment network.
How Local-Currency Settlement Could Change African Trade
Africa has a trade problem hidden inside a payments problem.
A business in Lagos may find it easier to pay a supplier in Dubai than one in Accra, Nairobi or Kigali. That is not because African businesses do not want to trade with each other. It is often because cross-border payment processes within Africa can be slow, expensive and dependent on foreign banking routes.
PAPSS wants to change that.
Afreximbank and the AfCFTA Secretariat launched PAPSS as financial market infrastructure to enable instant cross-border payments in local currencies between African markets.
That matters for the African Continental Free Trade Area. AfCFTA is supposed to increase trade between African countries. But trade cannot grow at full speed if payments remain slow and costly.
Better payment rails can help small businesses, importers, exporters and service providers transact across borders with less friction.
This is where PAPSS becomes bigger than fintech. It becomes trade infrastructure.
Why Nigeria Matters to PAPSS
Nigeria is one of PAPSS’ most important markets.
It has a large population, a deep banking sector, an active fintech ecosystem and strong demand for regional trade payments. If PAPSS works well in Nigeria, it can gain visibility across West Africa and beyond.
PAPSS says Nigerians can access the service through mobile apps at Access Bank, Lotus Bank, Sterling Bank, UBA and Wema Bank. It is also available through branches of more than 22 banks in Nigeria.
That distribution matters.
Many African payment ideas fail because users cannot access them easily. PAPSS has a better chance if it appears inside bank apps and branch networks that people already use.
The next step is awareness. Many users still do not know that PAPSS exists or how to use it. Banks and fintechs will need to explain it in simple terms.
The pitch should not be complicated: send money across Africa in local currency, faster and at lower cost.
PAPSS vs Stablecoins: Competition or Complement?
The Web3 angle is unavoidable.
Stablecoins already solve parts of Africa’s cross-border payment problem. Many traders, freelancers and businesses use USDT or USDC because they are fast, digital and dollar-linked.
But stablecoins also come with risks. Users must manage wallets, exchanges, on-chain fees, private keys, off-ramp access and regulatory uncertainty.
PAPSS offers a different route. It works through banks, central banks and regulated financial institutions. That makes it more familiar for governments, banks and formal businesses.
So the future may not be PAPSS versus stablecoins. It may be PAPSS and stablecoins solving different parts of the same problem.
Stablecoins may continue to serve users who need dollar liquidity, crypto settlement and borderless digital transfers. PAPSS may serve users who need compliant local-currency settlement across African countries.
For Blockwisely readers, this is the real conversation. Africa’s payment future may be multi-rail.
What PAPSS Means for Fintechs
PAPSS should not be seen as a threat to fintechs. It could become infrastructure that fintechs build on.
Payment companies, remittance startups and digital banks can use PAPSS to offer faster African transfers to their customers. Instead of building separate country-by-country rails, they can plug into a wider settlement network.
This could create better products for merchants, freelancers, SMEs and families sending money across borders.
The opportunity is strongest for fintechs that understand local distribution. PAPSS can provide the rail, but fintechs can build the user experience.
That means clear pricing, simple apps, better customer support and faster onboarding.
If this works, a user may never say “I am using PAPSS.” They may simply open a bank app or fintech wallet and send money to another African country.
That is when infrastructure becomes successful.
The Challenges PAPSS Still Faces
PAPSS still has major challenges ahead.
The first is adoption. A payment network needs real usage, not just official membership. Banks must actively promote it. Businesses must trust it. Consumers must understand it.
The second challenge is coverage. PAPSS wants to reach every African country, but each market has different regulations, currencies, banking systems and technical requirements.
The third challenge is foreign exchange. Local-currency payments are useful, but exchange rates must be clear and competitive. If users feel pricing is poor, they will return to informal channels.
The fourth challenge is user experience. If using PAPSS feels slow, complicated or expensive, people will ignore it.
Finally, PAPSS must prove reliability at scale. Cross-border payments require trust. Users need to know that money will arrive quickly and safely.
Why This Matters for Africa’s Digital Economy
Africa’s digital economy cannot scale without better payment rails.
E-commerce, freelancing, trade, remittances, digital services, creator payments, software exports and regional marketplaces all depend on moving money across borders.
Today, many of those payments remain harder than they should be.
PAPSS could reduce that friction. It could help African currencies move more easily within Africa. It could also reduce dependence on external payment routes for intra-African trade.
That does not mean PAPSS will solve every problem. But it gives Africa a serious attempt at building its own financial infrastructure.
This is why the 1,000% transaction-volume growth is important. It suggests the system is moving from promise to usage.
Bottom Line
The rise of PAPSS Africa payments is one of the clearest signs that Africa is trying to fix cross-border money movement on its own terms.
The network now connects about 30 countries, 26 central banks and more than 200 financial institutions. It wants to reach about 38 countries by the end of 2026 and eventually cover the continent.
If PAPSS succeeds, the impact could be significant. Businesses could trade more easily. Banks could settle faster. Fintechs could build better regional products. Consumers could send money across Africa with less friction.
The big story is not only that PAPSS is growing by more than 1,000% year-on-year.
The big story is that Africa is building a payment rail for itself.
And if that rail becomes easy to use, trusted and widely available, it could become one of the most important pieces of infrastructure behind the next phase of African trade.
FAQ
What is PAPSS?
PAPSS is the Pan-African Payment and Settlement System. It is a cross-border payment system developed and operated by Afreximbank in collaboration with the AfCFTA Secretariat to support money movement across Africa.
What does PAPSS do?
PAPSS enables instant or near-instant cross-border payments across Africa in local currencies. It is designed to reduce cost, improve reliability and reduce dependence on hard currency.
How fast is PAPSS growing?
PAPSS says transaction volumes have grown by more than 1,000% year-on-year, while transaction value has grown by about 125% since operations began in 2022.
Is PAPSS available in Nigeria?
Yes. PAPSS says it is available through mobile apps at Access Bank, Lotus Bank, Sterling Bank, UBA and Wema Bank, and through branches of more than 22 banks in Nigeria.
Is PAPSS the same as stablecoins?
No. PAPSS is a regulated cross-border payment and settlement system that works through banks and financial institutions. Stablecoins are blockchain-based digital assets often used for dollar-denominated transfers.
Why does PAPSS matter?
PAPSS matters because it could make African cross-border payments faster, cheaper and less dependent on foreign intermediary banks. That could support trade, fintech growth and financial integration across the continent.
