Onafriq, in collaboration with the Pan-African Payment and Settlement System (PAPSS), has officially launched a new cross-border payment service, initially piloting outbound transactions in Ghana. This significant development operationalizes a partnership established in 2022, which was designed to promote intra-African cross-border trade and enhance financial inclusion across the continent. The service aims to address long-standing challenges in African cross-border payments, such as high transaction costs and opaque exchange rates, by providing faster, more convenient, and cost-effective solutions for small and medium-sized enterprises (SMEs) and individuals.

Effective immediately, banks partnering with PAPSS, along with Onafriq’s authorized fintech, mobile money service providers, and traditional partners in Ghana, can enable their customers to send and receive money directly into mobile wallets and bank accounts. This pioneering initiative also seeks to integrate informal cross-border transactions into formal payment systems, with a primary emphasis on retail and SME transactions. Onafriq is leveraging PAPSS's robust infrastructure and regulatory coverage to offer its partners unparalleled access to these cross-border payment capabilities, ensuring they benefit from the safeguards and efficiency of PAPSS’s framework.

The African Export-Import Bank (Afreximbank) plays a crucial role as the settlement entity, ensuring trusted and timely settlement between transacting parties. Dare Okoudjou, Founder and CEO of Onafriq, emphasized the service's broader impact, stating, “This service is not just about convenience; it brings people together and enhances economic activity between Ghana and the region. We are dedicated to making financial services accessible to everyone and are proud to be at the forefront of this transformation.” Mike Ogbalu III, CEO of PAPSS, echoed this sentiment, highlighting the commitment to empowering SMEs and individuals by simplifying cross-border transactions and reducing liquidity burdens on participants.

A six-month pilot program, approved by the Bank of Ghana (BoG), will allow Onafriq and PAPSS to meticulously assess transaction flows, user adoption rates, and foreign exchange performance. This phase is crucial for refining the service and ensuring it delivers better rates and more accessible services to customers. The launch further deepens the long-standing collaboration between Onafriq and PAPSS, reinforcing their shared dedication to building essential infrastructure that empowers African businesses, individuals, and financial institutions continent-wide. The service is expected to soon be available on a wider range of mobile money and other fintech-based wallets.

Onafriq operates as an omnichannel network, connecting over 1 billion mobile money wallets, 500 million bank accounts, and more than 400,000 agents across 43 African markets. This extensive network enables diverse payment solutions, including domestic and cross-border disbursements, collections, card issuing and processing, agency banking, and treasury services. PAPSS, a centralized Financial Market Infrastructure, facilitates the secure flow of money across African borders, minimizing risk and fostering financial integration. It works in collaboration with Africa’s central banks, allowing commercial banks and licensed payment service providers to connect as participants. PAPSS was initially announced by Afreximbank and the African Union (AU) in 2019 as a key instrument for the implementation of the African Continental Free Trade Agreement (AfCFTA), and officially launched in Accra, Ghana, on January 13, 2022.