Challenges reminiscent of excessive transaction prices and opaque trade charges have been prevalent in Africa over the previous couple of years, that means that establishing sturdy cross-border fee avenues has been powerful. Operationalising a partnership that was agreed in 2022, Onafriq, the cross-border funds answer supplier, and Pan-African Cost and Settlement System (PAPSS), the centralised monetary market infrastructure throughout Africa, have launched a brand new cross-border fee service.
Kicking off in Ghana, the preliminary pilot will imply banks partnering with PAPSS and Onafriq’s authorised fintech, cellular cash service suppliers, and conventional companions within the nation can allow their clients to ship and obtain cash instantly into cellular wallets and financial institution accounts. The brand new launch will enhance monetary interoperability by making transactions quicker, extra handy, and cost-effective – the first emphasis of the brand new service will likely be on small and medium enterprises (SME) and retail transactions.
Dare Okoudjou, founder and CEO of Onafriq, mentioned: “We’re excited to be taking one other step in operationalising our vital partnership with PAPSS to deliver this revolutionary cross-border fee answer to our customers. This service is not only about comfort; it brings individuals collectively and enhances financial exercise between Ghana and the area.
“We’re devoted to creating monetary companies accessible to everybody and are proud to be on the forefront of this transformation. African borders are beginning to matter much less; that is Onafriq‘s purpose.”
Accelerating entry to monetary companies
The six-month pilot program – permitted by the Financial institution of Ghana (BoG) – will enable Onafriq and PAPSS to evaluate transaction flows, consumer adoption, and overseas trade efficiency whereas delivering higher charges and extra accessible companies to clients.
As a part of this pilot, Onafriq is leveraging PAPSS infrastructure and regulatory protection to supply its fintech, cellular cash, and conventional companions in Ghana unparalleled entry to cross-border fee capabilities. By taking part on this association, these companions profit from the safeguards and effectivity of PAPSS’s framework. The African Export-Import Financial institution (Afreximbank) serves because the settlement entity, guaranteeing trusted and well timed settlement between events.
Mike Ogbalu III, CEO of PAPSS, added: “Immediately marks a major milestone in our journey in the direction of a extra built-in monetary panorama in Africa. Our partnership with Onafriq represents a dedication to empowering SMEs and people by simplifying cross-border transactions. We imagine this service will assist cut back the liquidity burden on contributors whereas fostering monetary inclusion throughout the area.”
This launch deepens the long-standing collaboration between Onafriq and PAPSS and reinforces their shared dedication to constructing infrastructure that empowers African companies, people, and monetary establishments throughout the continent. The service will quickly be obtainable on cellular cash and different fintech-based wallets.
