Onafriq, in
collaboration with the Pan-African Payment and Settlement System (PAPSS),
announced the launch of a new cross-border payment service that will initially
pilot outbound transactions in Ghana. This launch operationalises the
partnership established in 2022, aimed at promoting intra-African cross-border
trade and enhancing financial inclusion. The service improves financial
interoperability by making transactions faster, more convenient, and
cost-effective for small and medium-sized enterprises (SMEs) and individuals.
Effective
immediately, banks partnering with PAPSS and Onafriq’s authorised fintech,
mobile money service providers and traditional partners in Ghana can enable
their customers to send and receive money directly into mobile wallets and bank
accounts. This pioneering service aims to address the existing challenges of
high transaction costs and opaque exchange rates, while further integrating
informal cross-border transactions into the formal payment systems. The primary
emphasis of this new service will be on SME and retail transactions.
As part of
this pilot, Onafriq is leveraging PAPSS infrastructure and regulatory coverage
to offer its fintech, mobile money, and traditional partners in Ghana
unparalleled access to cross-border payment capabilities. By participating in
this arrangement, these partners benefit from the safeguards and efficiency of
PAPSS’s framework. The African Export-Import Bank (Afreximbank) serves as the
settlement entity, ensuring trusted and timely settlement between parties.
Dare
Okoudjou, Founder and CEO of Onafriq, said, “We are excited to be taking
another step in operationalising our important partnership with PAPSS to bring
this innovative cross-border payment solution to our users. This service is not
just about convenience; it brings people together and enhances economic
activity between Ghana and the region. We are dedicated to making financial
services accessible to everyone and are proud to be at the forefront of this
transformation. African borders are starting to matter less; this is Onafriq's
goal.”
Mike Ogbalu
III, CEO of PAPSS, echoed this enthusiasm, saying, “Today marks a
significant milestone in our journey towards a more integrated financial
landscape in Africa. Our partnership with Onafriq represents a commitment to
empowering SMEs and individuals by simplifying cross-border transactions. We
believe this service will help reduce the liquidity burden on participants
while fostering financial inclusion across the region.”
The
six-month pilot program - approved by the Bank of Ghana (BoG) - will allow
Onafriq and PAPSS to assess transaction flows, user adoption, and foreign
exchange performance while delivering better rates and more accessible services
to customers.
This launch
deepens the long-standing collaboration between Onafriq and PAPSS and
reinforces their shared commitment to building infrastructure that empowers
African businesses, individuals, and financial institutions across the
continent. The service will soon be available on mobile money and other fintech
based wallets.
