Prudential Bank Ltd has activated the Pan African Payment and Settlement System (PAPSS) on its mobile banking application. This integration allows customers to send and receive cross-border payments across participating African countries at any time. The new feature facilitates transactions directly in local currencies, reducing the need for currency conversion and dependence on hard currencies.
This development is a significant step towards streamlining financial transactions within Africa. It addresses the challenges businesses and individuals face when conducting trade across different African nations. By enabling direct local currency payments, the bank aims to lower transaction costs and increase efficiency for its customers.
The activation aligns with Ghana’s broader economic goals, including the government's 24-hour economy policy. It also supports the objectives of the African Continental Free Trade Area (AfCFTA), which seeks to boost intra-African trade. This move by Prudential Bank contributes to creating a more integrated and efficient financial ecosystem across the continent, fostering economic growth and cooperation.
Ebow Quayson, Acting Managing Director of Prudential Bank, stated the move supports trade and retail payments. He said, "The activation of PAPSS on our Mobile App is a major step in supporting intra-African trade and enhancing retail payment convenience." Mr. Quayson added that the platform enables faster, safer, and more cost-effective cross-border transactions.
Mike Ogbalu III, Chief Executive Officer of PAPSS, welcomed Prudential Bank's initiative. He noted, "Prudential Bank going live on PAPSS for customers represents a significant milestone in building a unified and efficient payments ecosystem for Africa." Mr. Ogbalu III emphasized that making PAPSS available on mobile banking breaks down barriers to cross-border payments.
PAPSS is an initiative backed by Afreximbank, in partnership with the African Union and the AfCFTA Secretariat. It currently operates in more than 21 African countries, connecting over 180 commercial banks and fintech companies. The platform's goal is to facilitate instant cross-border payments in local currencies, thereby reducing reliance on foreign exchange.
The integration means Prudential Bank customers can now access this service directly through their mobile app. This enhances convenience and accessibility for individuals and businesses engaged in cross-border activities. The move is expected to stimulate economic activity by simplifying payment processes between African nations.
This strategic activation by Prudential Bank positions it as a key player in Africa's evolving digital payment landscape. It reflects a growing trend among financial institutions to adopt innovative solutions for regional economic integration. The success of such initiatives will be crucial for realizing the full potential of the AfCFTA and fostering greater financial independence for African economies.