- The Pan African Payment and Settlement System (PAPSS) and FBNBank Ghana have announced their collaboration to make it easier to process cross-border transactions that would generate new financial flows and advance trade and other economic activity among African nations.
- PAPSS is a financial market infrastructure that offers a reliable, quick, and affordable conduit for processing cross-border payments in order to promote intra-African trade.
- Mr. Victor Yaw Asante, the managing director of FBNBank Ghana, remarked that the bank believes PAPSS would play a significant part in the AfCFTA agenda, changing how their customers trade throughout the continent.
- The PAPSS network will have 8 central banks, 28 commercial banks, and 6 switches as of June 2022. Before the end of 20231, it will reach all five of Africa’s regions.
- According to reports, PAPSS has already established connections with several of the biggest commercial banks on the continent, including Ecobank, Zenith Bank, and Standard Bank (also known as Stanbic).
- PAPSS has a number of advantages, including promoting financial inclusion, increasing transparency of cross-border trade activity, boosting intra-continental trade, lowering the costs associated with trading with other currencies, enabling traders to make and receive payments in their local currencies, easing pressure on current accounts and demands for foreign exchange liquidity, and enhancing economic growth through intra-African trade.
