PAPSS Reports 1,000% Transaction Surge as Pan-African Payment Network Enters Next Growth Phase

The Pan-African Payment and Settlement System (PAPSS) is transitioning into a new strategic phase following a 1,000% surge in transaction volumes over the past year. For fintech professionals, this expansion signals a critical shift from infrastructure building to market activation, potentially solving the long-standing friction and high costs associated with cross-border payments across the African continent.

What was announced

PAPSS has reported significant growth as it prepares for its 2027 strategic shift. The platform now operates in more than 30 African countries, connecting 24 national and regional central banks, 16 switches, and more than 200 commercial banks and payment service providers. Its footprint extends to over 300 financial institutions through various partnerships. During 2026 alone, the network added approximately 10 new countries to its ecosystem.

The performance metrics indicate a massive uptick in adoption. Between comparable periods in 2025 and 2026, transaction volumes grew by 1,000%, while transaction values rose by 120%. Nigeria has been a primary driver of this activity, recording an 1,100% increase in volumes. The system currently offers three core solutions: the PAPSS Instant Payment System, the PAPSS African Currency Marketplace, and PAPSSCARD. New solutions are currently being piloted and are expected to be announced later in 2026.

Financially, the system has demonstrated transaction cost savings of between 92% and 95% and a reduction in foreign exchange requirements of up to 80%. Processing times have also been reduced by 99.99%. Looking ahead, the organization will host its annual payments conference, PAPSS COWRY 2026, on November 26 and 27 in Addis Ababa, Ethiopia. This event, co-hosted with the National Bank of Ethiopia, will focus on the next phase of market activation, which includes developing priority payment corridors and increasing consumer awareness.

"The first phase of PAPSS has been about building, connecting and establishing trust. We have built the infrastructure, expanded our network across Africa and demonstrated that PAPSS can deliver tangible benefits. As we move into our next phase from 2027, our focus will increasingly shift towards activating that network, deepening adoption and taking transaction growth to scale."

Mike Ogbalu III, Chief Executive Officer of PAPSS.

The companies involved

The Pan-African Payment and Settlement System (PAPSS) is a centralized financial market infrastructure designed to enable the efficient flow of money across African borders. It is a key initiative supported by the African Export-Import Bank (Afreximbank), a pan-African multilateral financial institution. Mike Ogbalu III serves as the Chief Executive Officer at African Export-Import Bank (Afreximbank), overseeing the PAPSS initiative. Afreximbank plays a pivotal role in financing and promoting intra- and extra-African trade, often stepping in to provide liquidity and infrastructure support where traditional commercial banking may retreat.

The National Bank of Ethiopia, which will co-host the upcoming PAPSS COWRY 2026 conference, is the central bank of Ethiopia. It has been instrumental in the country’s recent push toward financial modernization and digital payment adoption. By integrating with PAPSS, these central banks aim to reduce the continent's reliance on third-party currencies like the US Dollar or Euro for intra-African trade, instead facilitating settlements in local African currencies to preserve foreign exchange reserves.

What FF News has reported before

FF News has closely monitored the expansion of digital financial infrastructure across the continent, particularly involving PAPSS stakeholders. We recently covered how Afreximbank Extends Record EUR 110 Million Facility to Chad for Infrastructure and Economic Growth, highlighting the bank's role in regional development. In Ethiopia, the site of the upcoming PAPSS conference, we reported on the Ethiopia Accelerates National Digital Payment Rollout for Government Services initiative. Additionally, the local banking sector's modernization was evidenced when Abay Bank Launches Pre-Paid Visa Card to Drive Global Digital Payments in Ethiopia, showing a clear trend toward digital-first financial services in the region.

What this means

The sheer scale of volume growth—1,000% in a single year—suggests that the "network effect" for African cross-border payments is finally taking hold. For years, the fragmentation of 54 different markets and dozens of currencies has been the primary barrier to intra-African trade. By moving into an "activation" phase, PAPSS is putting pressure on traditional correspondent banking models that rely on expensive, slow routing through New York or London. The real test for the sector now is whether commercial banks will pass these 90%+ cost savings onto the end-user or retain them as margin. If adoption scales as intended, the reliance on the US Dollar for regional trade could face its most significant structural challenge yet.