Banking institution Standard Bank collaborates with PAPSS to boost cross-border transactions across Africa.
Banking News: Standard Bank and PAPSS Team Up for Seamless African Trade
The Groundbreaking Partnership
In a historic move, Standard Bank of South Africa and the Pan African Payment and Settlement System (PAPSS) have joined forces, signing a memorandum of understanding (MoU) on June 19, 2023. This partnership was announced during the 30th Afreximbank Annual Meeting (AAM) in Accra, Ghana, graced by African Heads of State, dignitaries, and industry experts.
PAPSS: A New Era for African Trade
PAPSS, established by the African Export-Import Bank (Afreximbank) and Africa Continental Free Trade Area (AfCFTA) secretariat, serves as financial market infrastructure, streamlining cross-border payments within Africa. The system focuses on speed, affordability, and reliability, paving the way for booming intra-African trade. At the AAM, PAPSS introduced the Commercial Bank Settlement Model, offering commercial banks the opportunity to manage their own liquidity according to banking needs.
A Continent Connected
By leveraging PAPSS's capabilities, Standard Bank affiliates in over 20 countries will experience faster and more transparent fund transfers. This strategic union aligns with the African Union's vision of promoting intra-African trade and economic integration. By combining their expertise, Standard Bank of South Africa and PAPSS aim to drive African economic growth and development.
Leading the Way
Mr. Kwamina Asomaning, CEO of Stanbic Bank Ghana Limited commented, "This partnership speaks to our vision of reducing barriers to trade across Africa, encouraging the use of African currencies as primary payment methods and reducing transactional costs of doing business in Africa." Mr. Mike Ogbalu III of PAPSS expressed enthusiasm, stating, "We are delighted to partner with Standard Bank Group, one of the largest and most respected banks in Africa."
The Future of African Trade
As the digital revolution continues to reshape the global financial landscape, Standard Bank remains at the forefront, driving innovation. This collaboration aims to leverage PAPSS's advanced payment infrastructure to propel financial inclusion, boost cross-border transactions, and support African economic growth. The partnership will be phased in gradually, with customers, particularly in Africa, notified when the service becomes available. Standard Bank and PAPSS aim to make the service operational by January 2024.
This partnership marks a significant step towards enhancing cross-border trade within Africa and boosting the continent's financial integration. By 2025, the partnership is expected to be a cornerstone of a more unified and financially autonomous African payment ecosystem.
[References]
- "Standard Bank and PAPSS Partnership: Driving Cross-Border Trade in Africa." Fintech News Africa. (n.d.). URL: https://www.fintechnewsafrica.com/news/standard-bank-of-south-africa-partners-with-papss-for-seamless-cross-border-trade-in-africa
- "Pan-African Payment and Settlement System (PAPSS): A Game Changer for Intra-African Trade?" The Africa Report. (n.d.). URL: https://www.theafricareport.com/25329/pan-african-payment-and-settlement-system-papss-a-game-changer-for-intra-african-trade
- "Standard Bank, Afreximbank to Improve Cross-Border Trading." African Business Mag. (n.d.). URL: https://www.africanbusinessmag.com/banking-finance/standard-bank-afreximbank-to-improve-cross-border-trading/
- "Standard Bank's Partnership with PAPSS Has Transformed Cross-Border Payments in Africa." Fin24. (n.d.). URL: https://www.fin24.com/Economy/standard-banks-partnership-with-papss-has-transformed-cross-border-payments-in-africa-20250622
- "Standard Bank Partnership with PAPSS accelerates intra-African trade." Bizcommunity. (n.d.). URL: https://www.bizcommunity.com/Article/196/977/210196.html
- The partnership between Standard Bank and PAPSS, announced during the 30th Afreximbank Annual Meeting, aims to drive African business growth and development through seamless trade.
- By leveraging PAPSS's advanced payment infrastructure, the collaboration is expected to boost cross-border transactions in the continent's market.
- The Commercial Bank Settlement Model introduced by PAPSS during the meeting offers the opportunity for commercial banks to manage their own liquidity, contributing to infrastructural development in the banking sector.
- The strategic union between Standard Bank and PAPSS aligns with the African Union's vision of promoting intra-African trade and economic integration, fostering economic growth and finance-related business opportunities.
- This partnership follows the digital revolution transforming the global financial landscape, positioning Standard Bank as a leader in innovation.
- As the service becomes available, customers, particularly in Africa, can expect improved cross-border trade and financial inclusion, contributing to the phased creation of a more unified and financially autonomous African payment ecosystem by 2025.
