Pesalink, PAPSS Link Networks to Simplify Cross-Border Payments in Kenya
Pesalink has partnered with the Pan-African Payment and Settlement System (PAPSS) to unlock faster and more affordable cross-border payments in local currencies, marking a major step towards deeper regional financial integration in Africa.
The partnership enables instant, 24/7 bank-to-bank cross-border transfers from PAPSS participating institutions into banks and mobile money operators within the Pesalink network in Kenya, with transactions settled directly in local currencies. This approach significantly reduces reliance on correspondent banking arrangements and foreign reserve currencies.
PAPSS is an initiative of African Export-Import Bank (Afreximbank), developed in collaboration with the African Union and the AfCFTA Secretariat. Under the agreement, Pesalink becomes a Technical Connectivity Provider, linking more than 80 Kenyan banks, fintechs, SACCOs and telecom operators to over 160 commercial banks and fintechs already connected to the PAPSS platform across Africa.
Cross-border payments in Africa have traditionally been costly and slow. According to the World Bank’s 2023 Remittance Prices Report, sending money across African borders costs an average of 7–8 per cent of the transaction value, with settlements often taking between three and seven business days.
The Pesalink–PAPSS partnership aims to significantly reduce these costs while accelerating settlement times for individuals, small and medium-sized enterprises (SMEs) and large businesses.
Speaking during the signing ceremony held in Nairobi, Mike Ogbalu III, Chief Executive Officer of PAPSS, said collaboration with national payment switches is critical to achieving seamless cross-border payments on the continent.
“For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential. Pesalink is the first switch we have piloted for transaction termination in Kenya, and we are already seeing greater adoption by opening more channels for seamless, local-currency cross-border payments across Africa,” he said.
Pesalink Chief Executive Officer Gituku Kirika said the partnership would directly benefit Kenyan banks and their customers by enabling faster and cheaper regional transactions.
“Kenyan banks will now be able to offer more efficient cross-border payment services, supporting individuals and businesses to build stronger regional trade relationships and participate more actively in an integrated digital economy,” Mr Kirika said.
Pesalink is Kenya’s instant and interoperable payment network, facilitating real-time transfers between bank accounts, mobile money wallets, fintech platforms and SACCOs via mobile applications, online channels and USSD.
Operated by Integrated Payment Services Limited (IPSL) and owned by the Kenya Bankers Association, the network has become a central pillar of Kenya’s real-time payments infrastructure.
PAPSS, meanwhile, continues to expand its footprint across the continent, supporting the efficient and secure flow of funds between African countries and contributing to the objectives of continental trade and financial integration.
