The launch of PAPSSCARD marks a significant milestone in Africa’s financial landscape, signaling a pivotal shift towards greater independence and efficiency in cross-border trade. This groundbreaking initiative stems from a collaborative effort between the African Export-Import Bank (Afreximbank), the Pan-African Payment and Settlement System (PAPSS), and Mercury Payment Services (MPS). By introducing PAPSSCARD, the first Pan-African card scheme on the continent, these entities are set to revolutionize the way financial transactions are conducted within and beyond Africa’s borders.
Professor Benedict Oramah, the esteemed President and Chairman of the Board of Directors at Afreximbank, expressed the pressing need for Africa to reduce its reliance on external payment systems, which have long hindered trade, escalated costs, and eroded control over financial data. In his words, “For too long, Africa’s dependence on external payment systems has hampered trade, driven up costs, and limited our control over financial data.” The introduction of PAPSSCARD represents a pivotal moment in addressing these challenges by empowering the continent to swiftly, securely, and affordably move money across borders, thereby fostering a conducive environment for intra-African trade and fostering economic growth.
The prevalent practice among African businesses to heavily depend on overseas banking counterparts for international payments not only incurs additional transaction costs but also leads to prolonged processing times. This reliance on external systems has posed a significant barrier to the seamless flow of funds within the continent, impeding the realization of Africa’s full economic potential. However, with the emergence of PAPSSCARD, a transformative solution has emerged to streamline cross-border transactions, offering a cost-effective and efficient alternative to traditional payment methods.
The African Continental Free Trade Area (AfCFTA) stands as a testament to the continent’s commitment to enhancing trade relations within Africa. The implementation of AfCFTA has laid the foundation for initiatives like PAPSS, which was introduced in 2022 with the explicit purpose of supporting AfCFTA objectives. By developing robust payment infrastructure tailored to facilitate cross-border transactions in local African currencies, PAPSS is not only fostering financial inclusivity but also bolstering economic integration across the continent.
“It gives us the ability to move money across borders swiftly, securely, and affordably. This is a transformative development aimed at boosting intra-African trade and keeping value within the continent.”
The unveiling of PAPSSCARD represents a watershed moment in Africa’s financial evolution, heralding a new era of financial autonomy and connectivity. By enabling seamless cross-border transactions in local currencies, this groundbreaking card scheme is poised to catalyze economic growth, promote financial inclusion, and empower African businesses to thrive in a global marketplace. As Africa takes bold strides towards economic integration and self-sufficiency, initiatives like PAPSSCARD serve as a beacon of progress, setting the stage for a more prosperous and interconnected future across the continent.
