Fidelity Bank has officially launched the Pan-African Payment and Settlement System ,PAPSS, to significantly enhance cross-border payment services across Africa. This strategic move aims to streamline and secure financial transactions between African countries, facilitating seamless, instant, and cost-effective payments in local currencies.
The PAPSS platform, backed by the African Export-Import Bank ,Afreximbank, and the African Union, serves as a groundbreaking financial market infrastructure designed to address the longstanding challenges associated with cross-border payments on the continent. Historically, such transactions have been hampered by reliance on foreign currencies, high fees, lengthy processing times, and risky foreign exchange fluctuations. Fidelity Bank’s adoption of PAPSS is set to eliminate these barriers by enabling direct payments between African countries without the need for converting funds into third-party currencies like the US dollar or euro.
Through PAPSS, Fidelity Bank customers can now make and receive real-time payments across borders using their local currencies. This service is designed to simplify transactions for corporations, small and medium enterprises, and individuals, boosting working capital efficiency and enhancing financial certainty. The platform’s multilateral net settlement framework optimizes liquidity by settling only net balances between countries, reducing the volume of funds that physically move across borders.
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Osita Ede, Divisional Head of Product Development at Fidelity Bank, emphasized the bank’s commitment to innovation and customer-centric services with this launch. He stated, “Our integration with PAPSS underscores our dedication to providing secure, efficient, and accessible financial solutions that meet the evolving needs of African businesses and individuals engaged in cross-border trade.”
The launch coincides with the increased push by the Central Bank of Nigeria for local banks to adopt PAPSS, following regulatory directives that simplify transaction documentation and promote broader participation in the platform. Currently, Fidelity Bank is among 22 Nigerian banks integrated into PAPSS, reflecting Nigeria’s leadership role in advancing intra-African trade facilitation.
Folasade Femi-Lawal, Country Manager, West Africa, Mastercard which has also partnered with Fidelity Bank on cross-border payment initiatives highlighted the broader impact this technology will have. “Innovations like PAPSS and Fidelity Send empower millions by offering greater choice, security, and financial inclusion, enabling Africa’s journey towards a more connected and integrated digital economy.”
The adoption of PAPSS by Fidelity Bank not only enhances cross-border operational efficiencies but also supports the African Continental Free Trade Area’s goal of creating a unified market. This alignment offers considerable economic opportunities by promoting intra-African trade, improving transparency over transactions, easing foreign exchange pressures, and stimulating growth through inclusive payment systems.
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