Pesalink, Kenya’s de facto instant payments network, has entered into a partnership with the Pan-African Payment and Settlement System (PAPSS) to improve cross-border payments and accelerate regional financial integration.

The agreement enables instant, 24/7 cross-border payments from PAPSS participants into banks and mobile money operators on the Pesalink network in Kenya, with all transactions settled in local currencies (the Kenyan Shilling KES). This approach lowers the need for complex correspondent banking arrangements and reduces dependency on foreign reserve currencies.

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PAPSS, an initiative of the African Export-Import Bank (Afreximbank) in partnership with the African Union and the AfCFTA Secretariat, facilitates payments between African countries. With this partnership, Pesalink becomes a Technical Connectivity Provider, linking more than 80 Kenyan banks, fintechs, SACCOs and telecom partners on the Pesalink network to over 160 commercial banks and fintechs on the PAPSS platform.

Pesalink is Kenya’s instant and interoperable payments network, supporting 24/7 transfers between bank accounts, mobile wallets, fintechs and SACCOs via apps, online platforms or USSD. Operated by Integrated Payment Services Limited (IPSL) and owned by the Kenya Bankers Association, the network has more than 80 institutions integrated into Kenya’s real-time payment infrastructure.

Cross-border payments across Africa have generally been slow and costly. According to the 2023 World Bank Remittance Prices report, average fees for sending money across African borders were around 7–8% of the value sent, compared with a global average of 6–7%, and settlement times could stretch from three to seven business days.

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The Pesalink-PAPSS integration is expected to lower costs, accelerate settlement times and help individuals, small and medium-sized enterprises, and businesses send money more efficiently across borders.

At the signing ceremony in Nairobi, PAPSS CEO Mike Ogbalu III said:

“For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential. Pesalink is the first switch we’ve piloted for transaction termination in Kenya, and we are already seeing greater adoption by opening more channels for seamless, local-currency cross-border payments across Africa.”

Pesalink CEO, Gituku Kirika, added:

“Kenyan banks will now be able to offer faster, cheaper cross-border payments.

They will be helping their customers grow more regional trading relationships and thrive in a more integrated digital economy.”

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