Introduction

The Pan-African Payment and Settlement System, known as PAPSS, has spent the last four years building the technical backbone for a truly integrated African economy. Since its January 2022 launch, the network now spans 30 countries, links 24 central banks, and onboards roughly 200 financial institutions and 16-plus payment switches. Its mission is straightforward: enable African businesses and governments to trade across borders without every transaction being funneled through external currencies like the dollar or euro.

What Happened

PAPSS delivers on that promise through a multilateral net settlement model that offsets inflows and outflows between nations, meaning only the net balance actually moves. The system has cut cross-border payment times from three to five days down to an average of seven seconds, while slashing transfer costs by as much as 95%. Transaction volumes have surged by over 1,000% in the past year alone. In 2025, PAPSS introduced the Pan-African Currency Marketplace, a direct currency-conversion platform that lets users exchange African currencies at prevailing local rates, from Nigerian naira to Ethiopian birr. Despite connecting 30 nations, adoption remains uneven. Some markets have seen banks integrate PAPSS into digital channels, while others lag due to regulatory timelines, infrastructure gaps, and varying levels of fintech development. Central bank support emerges as a decisive factor: in Ghana and Nigeria, where over 90% of commercial banks have signed on, the network has taken hold faster. Elsewhere, the path depends on local payment infrastructure, regulatory patience, and how widely the system is understood and used.

  • PAPSS connects 30 African countries, 24 central banks, about 200 financial institutions, and 16+ payment switches.
  • Cross-border payments that once took three to five days now settle in approximately seven seconds.
  • Transaction volumes have grown by more than 1,000% over the past year.
  • The Pan-African Currency Marketplace (PACM) launched in 2025 enables direct currency exchange between African locales at prevailing rates.
  • Adoption varies significantly by country, shaped by central bank approval speed, local fintech ecosystems, and existing payment infrastructure.

Why This Matters

The stakes are high. Intra-African trade accounted for just 14.4% of the continent’s total commerce in 2024, and Sub-Saharan Africa remains the most expensive region for remittances, with average costs reaching 8.45% in early 2025. PAPSS was designed to shrink both gaps. By keeping settlement local and reducing reliance on foreign currencies, the system aims to keep more value within African economies. The next phase shifts focus from mere connectivity to actual usage. PAPSS wants financial institutions to build merchant tools, remittance products, and export services on top of its network. A single API that grants access to PAPSS-connected accounts across multiple markets could lower the barrier for fintechs and tech companies. The initiative also looks outward, targeting connections with payment systems in China, India, and Brazil by 2027, but the immediate goal is reaching 38 countries by the end of 2026 and eventually onboarding all 54 African nations within five years.

Key Takeaways

  • PAPSS has connected 30 African countries, 24 central banks, 200+ financial institutions, and 16+ payment switches since launching in 2022.
  • Cross-border payments that once took three to five days now settle in approximately seven seconds, with costs reduced by up to 95%.
  • The Pan-African Currency Marketplace enables direct currency conversion between African locales, addressing fragmented monetary landscapes.
  • Adoption is uneven, driven largely by central bank approval speed, local fintech density, and existing payment infrastructure.
  • Phase two prioritizes deepening user impact: merchant-facing products, remittance services, and a unified API for multi-market access.
  • Targets include 38 countries by end-2026 and full 54-country coverage within five years.

Conclusion

PAPSS has proven that a continent-wide payment infrastructure is technically feasible. The next several years will determine whether that infrastructure becomes the everyday engine of African trade. With a clear roadmap to near-universal coverage, a focus on products that reach businesses and consumers, and a push to bridge regional payment systems beyond Africa, PAPSS sits at the intersection of finance and continental integration. Its success will hinge not just on how many countries are connected, but on how many actually use the system to move money, trade goods, and grow economies from within.