Kenya’s instant payment network Pesalink has entered into a partnership with PAPPS (the Pan-African Payment and Settlement System) in a move expected to lower the cost and complexity of cross-border payments across Africa.
The agreement announced on February 26, 2026 enables instant, 24/7 cross-border transactions from PAPSS participants directly into banks and mobile money operators connected to the Pesalink network in Kenya. Transactions will be settled in local currencies, reducing dependence on correspondent banking arrangements and foreign reserve currencies such as the US dollar.
PAPSS is an initiative of the African Export-Import Bank (Afreximbank), developed in collaboration with the African Union and the African Continental Free Trade Area Secretariat. The platform is designed to facilitate cross-border payments between African countries as part of broader regional trade integration efforts.
Under the new arrangement, Pesalink becomes a Technical Connectivity Provider to PAPSS. This effectively links more than 80 Kenyan banks, fintechs, SACCOs and telecommunications operators on the Pesalink network to over 160 commercial banks and fintech institutions already connected to PAPSS across the continent.
Cross-border payments in Africa have historically been expensive and slow. According to the World Bank’s 2023 Remittance Prices report, sending money across African borders costs an average of 7–8 percent of the transaction value, above the global average of 6–7 percent. Settlement timelines can range from three to seven business days, often constraining small and medium-sized enterprises engaged in regional trade.
By connecting the two systems, the partnership is expected to reduce transaction fees, shorten settlement cycles, and simplify the payment value chain. Individuals and businesses will be able to send and receive funds across African markets more efficiently, with funds credited directly into bank accounts or mobile wallets within Kenya.
Speaking during the signing ceremony at Pesalink’s offices in Nairobi, PAPSS CEO Mike Ogbalu III described the collaboration as a key step in scaling the platform’s impact.
“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,” Ogbalu said.
Pesalink CEO Gituku Kirika said the integration will allow Kenyan financial institutions to expand their regional offerings.
“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,” Kirika noted.
Pesalink, operated by Integrated Payment Services Limited (IPSL) and owned by the Kenya Bankers Association, has become a core pillar of Kenya’s real-time payments infrastructure since its establishment in 2015 under the National Payment System Act. The network facilitates 24/7 interoperable transfers between bank accounts, mobile money wallets, fintech platforms and SACCOs via mobile apps, online channels and USSD.
The integration with PAPSS signals a deeper push toward continental financial connectivity. As African countries operationalize the African Continental Free Trade Area (AfCFTA), efficient payment rails are increasingly viewed as critical infrastructure for unlocking intra-African trade.
By bridging domestic instant payment systems with a continental settlement platform, the Pesalink–PAPSS partnership could mark a practical step toward reducing friction in African cross-border commerce.
Feature Photo: Pesalink CEO, Gituku Kirika (left) and PAPSS CEO, Mike Ogbalu III (right) exchange the partnership documents following the signing of the agreement in Nairobi, Kenya
