Algeria Integrates with Pan-African Payment and Settlement System (PAPSS), Enhancing Financial Unity within Africa
Pan-African Payment and Settlement System (PAPSS) Expands to Algeria, Boosting Intra-African Trade
The Pan-African Payment and Settlement System (PAPSS), a centralized infrastructure for cross-border payments, has taken a significant step forward in its mission to transform African trade. With the recent integration of Algeria, PAPSS now connects 18 countries across four African regions, marking a significant milestone in Africa's journey towards deeper financial integration.
Created by Afreximbank in collaboration with the African Union and the AfCFTA Secretariat, PAPSS aims to enable instant, secure, and cost-effective cross-border payments in local African currencies. By eliminating the need for third-party foreign currencies like the U.S. dollar or Euro, PAPSS reduces transaction costs and fosters intra-African trade by facilitating seamless payments between businesses and individuals across African countries.
The inclusion of Algeria in the PAPSS network is a significant step, as it contributes to broadening the geographic reach and impact of the system. This expansion supports the goals of the African Continental Free Trade Area by further reducing cross-border payment friction in a key regional economy, thus boosting intra-African trade flows.
The Bank of Algeria's membership in PAPSS is expected to improve payment efficiency and facilitate intra-African trade. Mike Ogbalu III, Chief Executive Officer of PAPSS, states that the Bank of Algeria has joined PAPSS to support Algeria's commitment to accelerating African economic integration. The addition of the Bank of Algeria to PAPSS's network is expected to further support cross-border payments and enhance the regulatory framework governing intra-African trade.
PAPSS currently connects more than 150 commercial banks and 14 switches, demonstrating growing trust in the system. Since its debut in West Africa in 2022, PAPSS has expanded its reach to include Northern Africa, with Tunisia, Egypt, Morocco, and now Algeria on board.
The entry of Algeria into PAPSS not only strengthens the presence of PAPSS in North Africa but also demonstrates the continent's rising confidence in the system as the engine for Africa's payment transformation. PAPSS has helped banks experience transaction volume surges of over 1000% through digital channels integration, and it has reduced intra-Africa cross-border transaction costs among participating countries, enabling savings of up to 27% for end users.
Algeria will host the Intra-African Trade Fair 2025 (IATF2025) from 4th to 10th September 2025 in Algiers. As a flagship initiative of Afreximbank, the IATF2025 is expected to bring together over 35,000 participants from more than 140 countries, creating an unrivaled platform for business, investment, and the realization of the AfCFTA vision.
In summary, PAPSS is transforming intra-African trade by enabling instant cross-border payments in local currencies, and its integration of Algeria expands this effect by linking one of Africa's largest economies to the PAPSS-enabled trade ecosystem, further promoting continental economic integration and trade expansion. PAPSS is revolutionizing how money moves within Africa and beyond, and its expansion into Algeria is a significant step in advancing Africa's journey towards deeper financial integration.
The expansion of PAPSS to include Algeria signifies a crucial move in transforming the fintech landscape of African finance and business, as PAPSS now caters to 18 countries across Africa, fostering seamless cross-border payments. Furthermore, the addition of Algeria's central bank to PAPSS's network strengthens the system's regulatory framework, promoting more efficient intra-African trade.
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