Onafriq and PAPSS Launch Innovative Cross-Border Payment Service in Ghana
Onafriq, in partnership with the Pan-African Payment and Settlement System (PAPSS), has introduced a groundbreaking cross-border payment service that will kick off with outbound transactions in Ghana. This initiative, which stems from the collaborative agreement established in 2022, aims to boost intra-African cross-border trade and enhance financial inclusion. The newly launched service promises to streamline transactions, making them faster, more convenient, and cost-effective for small and medium-sized enterprises (SMEs) and individuals.
Effective immediately, banks collaborating with PAPSS and Onafriq’s authorized fintech partners, mobile money service providers, and traditional partners in Ghana can empower their customers to send and receive money directly into mobile wallets and bank accounts. This innovative service is designed to tackle the challenges posed by high transaction costs and opaque exchange rates, while also integrating informal cross-border transactions into formal payment systems. The primary focus of this service will be on SME and retail transactions.
As part of the pilot program, Onafriq is leveraging PAPSS infrastructure and regulatory coverage to offer its partners in Ghana unparalleled access to cross-border payment capabilities. By participating in this collaboration, these partners can benefit from the security and efficiency of PAPSS’s framework. The African Export-Import Bank (Afreximbank) serves as the settlement entity, ensuring reliable and timely settlement between involved parties.
Dare Okoudjou, Founder and CEO of Onafriq, expressed his enthusiasm, stating, “We are thrilled to be moving forward in implementing our strategic partnership with PAPSS to introduce this innovative cross-border payment solution to our users. This service goes beyond convenience; it fosters connectivity and boosts economic activities between Ghana and the region. We are committed to making financial services accessible to all and are proud to be at the forefront of this transformation. African borders are becoming less of a barrier, and this is the goal of Onafriq.”
Mike Ogbalu III, CEO of PAPSS, echoed Okoudjou’s sentiments, saying, “Today marks a significant milestone in our journey towards a more integrated financial landscape in Africa. Our collaboration with Onafriq signifies our dedication to empowering SMEs and individuals by simplifying cross-border transactions. We believe that this service will help alleviate the liquidity burden on participants while promoting financial inclusion across the region.”
The six-month pilot program, approved by the Bank of Ghana (BoG), will enable Onafriq and PAPSS to evaluate transaction flows, user adoption, and foreign exchange performance while delivering competitive rates and accessible services to customers.
This launch strengthens the longstanding partnership between Onafriq and PAPSS and underscores their joint commitment to constructing infrastructure that empowers African businesses, individuals, and financial institutions throughout the continent. The service will soon be accessible on mobile money and other fintech-based wallets.
About Onafriq
Onafriq serves as an omnichannel network of networks, breaking down borders by providing partners with a unified pathway to unlock the full potential of cross-border and cross-platform payment solutions. With a presence in 43 African markets, Onafriq links over 1 billion mobile money wallets, 500 million bank accounts, and more than 400,000 agents in Nigeria, facilitating domestic and cross-border disbursements and collections, card issuing and processing, agency banking, and treasury services.
Onafriq collaborates with global and regional enterprises, mobile network operators, banks, fintech companies, money transfer operators, global development organizations, and online and offline merchants. With robust regulatory and compliance capabilities and a strong regional presence spanning 10 offices in Africa, as well as locations in the UK, US, and China, Onafriq is paving the way for enhanced accessibility for individuals across Africa and beyond. Learn more at onafriq.com.
About PAPSS
The Pan-African Payment and Settlement System (PAPSS) is a centralized Financial Market Infrastructure that facilitates the secure flow of money across African borders, reducing risk and promoting financial integration across regions. Working in conjunction with Africa’s central banks, PAPSS offers a payment and settlement service that commercial banks and licensed payment service providers can connect to as ‘Participants’. PAPSS was first announced by Afreximbank and the African Union at the Twelfth Extraordinary Summit of the African Union in July 2019 in Niamey, Niger Republic, as a key instrument for implementing the African Continental Free Trade Agreement (AfCFTA).
Following its official launch in Accra, Ghana, on January 13, 2022, PAPSS is now available for public use, marking a significant step towards achieving a more integrated financial landscape in Africa.
