By 
The Pan-African Payment and Settlement System (PAPSS) is preparing to connect with major payment systems in China and India by the first quarter of next year, as transaction volumes on the platform continue to record significant year-on-year growth.
Speaking at a media parley in Lagos, PAPSS Chief Executive Officer, Mike Ogbalu III, said the planned integrations are part of the payment platform’s second phase, which is focused on expanding adoption, developing new services and connecting Africa’s payment infrastructure to major global markets.
Ogbalu said PAPSS expects to connect with the largest payment system in China and have India’s payment system operational on its platform by the first quarter of next year.
“By the first quarter of next year, PAPSS expects to be connected to the largest payment system from China and have the Indian payment system live on its platform, while integrations involving Brazil and other countries are expected later next year,” he said.
The planned connections would extend PAPSS beyond its intra-African payment network and create new links between African markets and some of the world’s largest economies.
The expansion comes as PAPSS continues to increase its footprint across Africa, with the platform currently connected to 30 countries and targeting about 38 countries before the end of 2026.
The network represents approximately 26 to 27 central banks, alongside about 200 financial institutions and more than 60 payment switches, including 10 national switches.
PAPSS records sharp increase in transaction activity
The expansion of PAPSS has been accompanied by significant growth in transaction activity.
According to Ogbalu, transaction volumes on the platform have increased by more than 1,000 per cent compared with the previous year, while transaction value has risen by more than 125 per cent.
The growth reflects increasing adoption of interoperable payment infrastructure designed to make cross-border transactions faster and more efficient across African markets.
PAPSS has reduced the time required to complete cross-border payments from between three and five days to as little as seven seconds, representing a reduction of about 99 per cent.
The platform has also reduced payment costs by as much as 95 per cent, according to Ogbalu.
A key feature of PAPSS is its multilateral net settlement model, which is designed to reduce Africa’s reliance on third-party currencies for intra-African transactions.
Between 80 and 90 per cent of transactions, depending on the market and level of adoption, are settled in local currencies under the model.
Rather than requiring every transaction between two countries to be settled through a third currency, only the net balance between the countries needs to be settled.
For example, if transactions worth $10 million move from Nigeria into Ghana while $9 million flows in the opposite direction, only the $1 million net balance would need to be settled through a third currency.
Ogbalu said increasing adoption of PAPSS was pushing reliance on third-party currencies for intra-African transactions closer to zero.
PAPSS shifts focus from expansion to adoption
The payment platform has now entered its second phase after completing its initial rollout, with its priorities shifting from geographical expansion to deeper adoption and broader functionality.
The next phase will focus on increasing usage across existing markets, developing additional payment services and integrating PAPSS with major global payment systems.
The planned links with China and India are therefore expected to form part of a broader strategy to position PAPSS as an important connection between Africa and international payment networks.
Ogbalu said PAPSS is targeting coverage of about 80 per cent of Africa’s major economies in the near term, while pursuing full continental adoption within the next five years.
Comments