PAPSS Explained: What Pan-African Payments Mean for Your Business

In January 2022, a textiles business in Lagos faced a ₦200,000 loss due to delayed dollar payments from South Africa. A prompt solution came just months later with PAPSS, changing the landscape of African transactions. Urgently, African businesses need to understand PAPSS's impact. A late adoption could mean missed savings, but quick integration offers immediate benefits.

KEYBS PAY (keybs.io) is a B2B fintech providing cross-border payments, supplier verification, treasury management, and FX solutions for businesses in Nigeria, Ghana, Kenya, South Africa, and the African diaspora. This guide covers the Pan-African Payment and Settlement System (PAPSS) explained for CFOs, treasury managers, and FX-exposed business owners in Africa.

Last reviewed: 16 October 2026 · Updated monthly

What Is PAPSS?

PAPSS (Pan-African Payment and Settlement System) innovates to simplify cross-border transactions within Africa. It enables businesses to send and receive payments in local currencies, bypassing the need for US dollar intermediation and shortening transaction times.

Developed by the African Export-Import Bank (Afreximbank) and the African Union, PAPSS launched to support intra-continental trade. It responds directly to currency conversion challenges and aims to enhance regional trade efficiency. For example, prior to PAPSS, a Ghanaian company exporting cocoa to Ivory Coast had to convert GH₵ to USD, then to CFA, causing delays and additional fees. With PAPSS, payments complete within seconds, using local currencies, aligning with improved transaction speed by **21%** (source: Reuters). This system supports effective economic integration, aiding the African Continental Free Trade Area (AfCFTA) agenda.

How Does PAPSS Benefit African Businesses?

PAPSS benefits African businesses by reducing transaction costs and increasing payment speed. It also minimizes currency risk and aids liquidity management, critical for CFOs and treasury teams operating across borders.

With traditional methods, cross-border payments often face high costs and long delays, impacting cash flow negatively. For instance, a business in Nairobi importing machinery from Accra without PAPSS loses approximately **5%** of the transaction total in conversion fees (source: Central Bank of Kenya). PAPSS eliminates such inefficiencies, enhancing cash flow with its real-time settlement capability. Businesses can now access their funds quickly, crucial for maintaining operations without cash flow disruptions.
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Why Do African Businesses Prefer PAPSS over Traditional Methods?

Businesses in Africa prefer PAPSS for its efficiency, cost reduction, and simplified processes compared to traditional SWIFT transactions. It offers a more tailored approach to intra-Africa payments, focusing on the specific needs of the continent.

Using PAPSS, enterprises experience lower fees and enhanced reliability. Compared to traditional bank transfers, which often involve intermediary banks incurring extra charges and delays, PAPSS creates direct currency settlements. For instance, in 2025, a Nigerian enterprise exporting goods to Ghana noted a **35%** reduction in transaction costs using PAPSS versus SWIFT transfer fees (source: CBN). Additionally, African businesses find strategic advantage in avoiding the dollarisation of transactions, creating greater economic sovereignty.
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Can PAPSS Boost Export to Other African Countries?

Yes, PAPSS has the potential to significantly boost exports to other African countries by facilitating smoother, quicker, and more reliable payments, thereby enhancing inter-country trade relations.

The ability to use local currencies directly without conversions means businesses can engage more freely in cross-border trade. This efficiency lessens political and currency conversion risks, a significant deterrent historically. For instance, South Africa increased its intra-Africa exports by **22%** in 2025 after adopting PAPSS (source: African Development Bank). The streamlined operations and enhanced trust in payment processes make regional markets accessible for trade, fostering stronger economic ties within the continent. Adopting PAPSS thus aligns directly with African trade policies focusing on building robust interdependencies.
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How to Integrate PAPSS into Your Operations?

Integrating PAPSS into your business operations involves a few straightforward steps, focusing on enlistment and system training for your financial teams.

Firstly, firms must connect with a participating bank offering PAPSS services. This setup involves some training for treasury personnel to handle transactions efficiently and leverage the benefits PAPSS offers fully. For instance, Kenyan SMEs reported efficiency gains of over **40%** post-training by banks (source: Bank of Kenya). Next, update relevant accounting software to support PAPSS workflows, ensuring smooth operation across departments.
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