PAPSS expands across Africa as cross-border payments rise

The Pan-African Payment and Settlement System has outlined an ambitious roadmap to secure full continental integration within the next five years, pivoting its primary operational focus from foundational construction to maximizing active commercial usage. According to Punch Newspapers and Business News Nigeria, the cross-border financial market infrastructure currently links participating territories, central banks, and financial institutions as part of a wider effort to boost commercial activity across the region.

Addressing a press conference in Lagos, PAPSS Chief Executive Officer Mike Ogbalu detailed the transition from the network's initial developmental phase into its current strategic iteration. While the first phase prioritized establishing regional connectivity, institutional links, and regulatory frameworks across participating markets, the current focus centers on maximizing practical utility for end-users, merchants, and small businesses.

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"In phase one, we dealt with spread. But today, in our phase two, it is all about deepening, taking the value that we created and actually making it available where it matters most to the end users,"

Mike Ogbalu, Chief Executive Officer, via Punch Newspapers and Business News Nigeria

The financial platform currently connects a substantial network of central banks and financial institutions, alongside various national and regional payment switches. This integrated layout allows banks, financial technology companies, and payment service providers to access instant cross-border transfer capabilities. Activity on the network has surged, with transaction numbers climbing rapidly compared to preceding periods as smaller enterprises embrace digital alternatives over traditional cash handling.

Financial institutions that have integrated the system into their digital banking architecture have experienced notable surges in transaction counts, pointing to a broader behavioral shift away from physical branch visits. Furthermore, the deployment of application programming interfaces aims to simplify cross-border commerce by letting businesses connect to network accounts through a single interface, fostering innovation around remittances and merchant payments.

Metric / Phase	Current Status	Target / Milestone
Connected Countries	30 countries	About 38 countries by the end of 2026
Continental Coverage	Baseline established	About 80 percent near term, 100 percent within five years
Strategic Focus	Phase one: Infrastructure building	Phase two: Usage deepening and commercial value

Despite this momentum, expansion efforts face hurdles stemming from disparate regulatory speeds and infrastructural variances among different national central banks. Some regulatory bodies move cautiously due to differing evaluations of the platform's utility or protective concerns regarding sovereign financial infrastructure. To ease these apprehensions, leadership has emphasized that the network acts as a complementary connecting layer rather than an adversarial replacement for domestic payment systems.

"We have said to them that if you like your payment system, keep it, but connect it into PAPSS,"

Mike Ogbalu, Chief Executive Officer, via Punch Newspapers and Business News Nigeria

Engagements with major continental economies that remain outside the immediate network, notably South Africa, have proceeded positively. As reported across regional coverage, bridging these key markets is essential to creating a unified trading zone that diminishes reliance on external payment infrastructure outside the continent, ultimately fulfilling the long-term promises outlined in regional development agendas.

"We focused more on the building. This phase two now is more about how we actually begin to deliver on the promises of AfCFTA and Agenda 2063,"

Mike Ogbalu, Chief Executive Officer, via Punch Newspapers and Business News Nigeria

As the network advances through its newly launched second strategic plan, stakeholders are watching to see how quickly remaining central banks integrate their national switches into the overarching infrastructure. Continued engagement with major markets will dictate whether the platform hits its near-term expansion markers ahead of the ultimate five-year horizon.