Onafriq, in partnership with the Pan-African Payment and Settlement System (PAPSS), has launched a new cross-border payment service, starting with outbound transactions from Ghana.
The pilot marks the operational debut of their 2022 partnership focused on boosting intra-African trade and financial inclusion.
Why it matters
Cross-border payments in Africa are often expensive and opaque. This new service aims to change that—streamlining payments, reducing transaction costs, and enhancing access for SMEs and individuals. It’s also a move toward bringing informal money flows into formal financial systems.
How it works:
- Ghanaian banks, mobile money providers, fintechs, and Onafriq’s partners connected to PAPSS can now send and receive money directly to mobile wallets or bank accounts.
- The African Export-Import Bank (Afreximbank) acts as the settlement institution, ensuring secure and timely transactions.
- The service targets retail and SME transactions with a focus on affordability and transparency.
Pilot phase:
- Approved by the Bank of Ghana, the six-month pilot will evaluate adoption, transaction flow, and FX performance.
- The pilot will help Onafriq and PAPSS refine the service for broader rollout across the continent.
What they’re saying:
- “This service is not just about convenience; it brings people together and enhances economic activity between Ghana and the region,” said Dare Okoudjou, Founder and CEO of Onafriq.
- “Our partnership with Onafriq represents a commitment to empowering SMEs and individuals by simplifying cross-border transactions,” added Mike Ogbalu III, CEO of PAPSS.
What’s next
The service will soon expand to more African markets and be integrated with mobile money and other fintech wallets, as Onafriq and PAPSS continue to scale intra-African payment infrastructure.
