This was agreed upon yesterday with the Pan-African Payment and Settlement System (PAPSS) on the sidelines of the AfreximBank Annual Meeting in
PAPSS provides a secure and efficient channel for processing cross-border payments.
"With this agreement, we bring on board our payments and collections expertise spanning over 120 years," Russo said.
"This means that our customers will now have access to vast economic opportunities that will deliver multiple advantages and efficiencies especially when conducting Intra-African trade payments."
PAPSS is a centralized Financial Market Infrastructure developed in collaboration with the
It provides an alternative to current high-cost and lengthy correspondent banking relationships to facilitate trade and other economic activities among African countries through a simple, low-cost, risk-controlled payment clearing and settlement system.
"As a Pan-African banking institution, it is our desire to play a bigger role in facilitating trade across
The platform will deliver multiple advantages and efficiencies to intra-African trade payments, including a reduction in the duration and time variability of cross-border payments across
It also supports real-time payments, decreases the liquidity requirements of commercial banks for cross-border payments, and removes transaction value limits, among others.
Currently, at least eight Central Banks, 28 commercial banks, and six switches have signed up for the platform.
It has been successfully piloted in the six countries of the
Additionally, all African Central Banks are expected to sign up by the end of 2024, and all commercial banks by the end of 2025.
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