• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Markets Currencies

Understanding the hype around PAPSS and how it works

Ubah Jeremiah Ifeanyi by Ubah Jeremiah Ifeanyi
January 17, 2022
in Currencies
PAPSS

Understanding the hype around PAPSS and how it works

Share on FacebookShare on TwitterShare on Linkedin

The dream of an integrated market in Africa seems to be coming to reality with the recent introduction of the Pan-African Payment and Settlement System (PAPSS)

PAPSS is a game-changer when it comes to trade in Africa. A participant in one African country pays in their currency, while a seller in another country receives payment in their currency.

PAPSS is the first centralized payment market infrastructure for intra-African trade and commerce payments processing, clearing, and settlement. The Afreximbank established it in collaboration with the West African Monetary Institute (WAMI).

RelatedStories

AfreximBank approves $200 million finance facility to BUA Group for expansion projects 

Moody’s downgrades Afreximbank’s credit rating to Baa2, citing sovereign lending risks 

July 4, 2025
Africa Social Impact Summit

Afreximbank, Coca-Cola, British Council, AU GIZ and MTN Foundation lead SDG acceleration agenda ahead of 2025 ASIS Summit

July 1, 2025

After a successful pilot in the West African Monetary Zone (WAMZ), the payment system was launched commercially. Gambia, Gambia, Ghana, Guinea, Liberia, Nigeria, and Sierra Leone make up the WAMZ, a West African economic and integration organization.

Secretary-General of AfCFTA, H.E Wamkele Mene said that PAPSS would boost intra-Africa trade as cross-border payments will become less reliant on third currencies, earning the continent an average of $5 billion annually.

How Governments and central banks are connecting with PAPSS

PAPSS has a dual role for central banks. Through their Central Bank Settlement Membership, they operate as the national settlement agent for each country, as well as a Direct participant with all of the benefits that Direct Participants in PAPSS provides.

Some of the benefits to the government are : 

  • Easing the pressure on current accounts and decreased foreign exchange liquidity.
  • Increased transparency bringing greater oversight of cross-border transactions, creating more confidence and increasing potential to generate revenue.
  • Enhanced financial inclusion and improved economic growth.

How PAPSS helps consumers 

Businesses large and small, as well as individuals, whose payments and remittances are being processed through PAPSS benefit from:

  • Instant/near instant payments across African borders without converting to different currencies.
  • Improved working capital through payment certainty and faster transactions.
  • Access to various payment facilitating options for millions of Africans including those previously underserved.

How instant payments work

Instant payment eliminates the requirement for participants to convert local currencies into hard currencies, which required cash to leave Africa, be converted, and then remitted back to the beneficiary bank, adding days to the transaction time.

Compliance, legal, and sanctions checks are also performed quickly within the system, according to the company. The payment process is completed in less than 120 seconds.

How pre-funding works

The system must ensure that funds are available to complete the originator’s transaction before effecting the transfer of debits and credits between participants’ accounts, due to the rapidity of the real-time payment process, it is observed.

As a result, participants must agree to a pre-funding arrangement. In the pre-funding process, direct participants integrate directly with PAPSS and central bank real-time gross settlement (RTGS) systems. Indirect participants, who do not have an RTGS account, can fund or defund their clearing accounts on the system with the help of a direct participant who provides the requisite liquidity.

The ISO 20022 communications standard is used to send notifications to PAPSS, the participants, and RTGS about the progress of each stage of the transaction.

How settlement works

The Pan-African Payments and Settlement System must deliver speedy settlement within 24 hours. Net settlement between all participating central banks occurs at the same time every day, at 11.00 UTC.

Similar to the pre-funding method, notifications are transmitted over an ISO 20022 messaging system, informing PAPSS, the participants, and RTGS of the transaction’s status at each stage.

The system’s primary function is its instant payment system, which provides wholesale and retail real-time payments as well as bank and payment service provider connectivity, as previously indicated.

Key features of PAPSS instant payment are: instant and irrevocable credits to customer accounts;

  • Immediate confirmation to both originator and beneficiary;
  • Service availability 24/7, 365 days a year;
  • ISO 20022 global message standard allowing interoperability,
  • Large data sets and rich data for payment and remittance information; and
  • Secure infrastructure, incorporating cyber-security and payment fraud systems underpinned by behavioral analytics and machine learning capabilities.
Tags: AfreximBankFeaturedPan African Payment and Settlement SystemPAPSS
Ubah Jeremiah Ifeanyi

Ubah Jeremiah Ifeanyi

For further inquiries about this article, contact: Email: Ifeanyi.ubah@nairametrics.com Twitter: @ubahjc Linkedln: Jeremiah Ubah

Related Posts

AfreximBank approves $200 million finance facility to BUA Group for expansion projects 
Financial Services

Moody’s downgrades Afreximbank’s credit rating to Baa2, citing sovereign lending risks 

July 4, 2025
Africa Social Impact Summit
Business News

Afreximbank, Coca-Cola, British Council, AU GIZ and MTN Foundation lead SDG acceleration agenda ahead of 2025 ASIS Summit

July 1, 2025
AAM2025: Tinubu calls for PAPSS payment system embracement across Africa for financial integration 
Financial Services

AAM2025: Tinubu calls for PAPSS payment system embracement across Africa for financial integration 

June 28, 2025
Why Fitch’s ratings on Afreximbank loans to African Nations is a contradiction — George Elombi 
Financial Services

Why Fitch’s ratings on Afreximbank loans to African Nations is a contradiction — George Elombi 

June 27, 2025
CBN Governor Yemi Cardoso to be honoured at Nairametrics Capital Market Awards for monetary policy reforms and banking sector recapitalization 
Financial Services

Focus on ‘African-led, African-owned’ growth, digital transformation – Cardoso tells African leaders at Afreximbank AGM 

June 25, 2025
Salesforce Layoffs: Tech giant trims 300 jobs amid restructuring efforts
Business News

Afreximbank targets ‘billions of dollars’ funding deals at 2025 Annual Meetings in Abuja   

June 21, 2025
Next Post
Dr Sarah Alade: Adviser to the President at the Nigerian Economic Outlook

How FG plans to implement the National Development Plan - Dr Sarah Alade

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  •  Africans will develop Africa, Dangote tells Global CEOs 
  • Seplat Energy says indigenous capacity, innovation, investor confidence boosting fortunes of energy Sector 
  • Petroleum Development Fund shortlists 5,746 Nigerians for foreign scholarship interviews

Follow us on social media:

Recent News

 Africans will develop Africa, Dangote tells Global CEOs 

 Africans will develop Africa, Dangote tells Global CEOs 

July 14, 2025
Seplat Energy says indigenous capacity, innovation, investor confidence boosting fortunes of energy Sector 

Seplat Energy says indigenous capacity, innovation, investor confidence boosting fortunes of energy Sector 

July 14, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics