Cross-border payment service trial initiates between Onafriq and PAPSS within Ghana's borders
In a significant step towards increasing financial transactions within the African continent, Onafriq, in partnership with the Pan-African Payment and Settlement System (PAPSS), has launched a new cross-border payment service. This service, currently in an active pilot phase, began operations on June 20, 2025, in Ghana [1][2][3][4].
The service, aimed at promoting financial inclusion and trade within Africa, enables banks, fintechs, mobile money operators, and traditional financial partners in Ghana to facilitate outbound cross-border transactions directly into mobile wallets and bank accounts across Africa.
Dare Okoudjou, Founder and CEO of Onafriq, stated that the service is not just about convenience, but also about enhancing economic activity between Ghana and the region [1]. Mike Ogbalu III, CEO of PAPSS, commented that the partnership with Onafriq represents a commitment to empowering SMEs and individuals by simplifying cross-border transactions [1].
The key focus of this service is to reduce costs and enhance financial inclusion by addressing the high transaction fees and opaque exchange rates that have traditionally hindered cross-border payments in Africa. Leveraging PAPSS's infrastructure and regulatory framework, Onafriq's platform ensures faster, more secure, and cost-effective transactions [1][2][3][4].
A six-month pilot approved by the Bank of Ghana is currently underway to evaluate transaction flows, user adoption, and foreign exchange performance [3]. By using PAPSS's local currency system, cross-border transaction fees can be lowered to as little as 1%, compared to standard correspondent banking fees which can be 10% to 30%, thereby potentially saving Africa billions in currency outflows [4].
The service integrates informal cross-border transactions into formal systems, facilitating greater financial inclusion and promoting intra-African trade through easier access to cross-border payment services for SMEs and individuals [1][2][3][4]. The African Export-Import Bank (Afreximbank) acts as the settlement entity, ensuring trusted and timely payment settlements between parties using a Pan-African centralized platform designed by the African Union and Afreximbank [1][2][4].
Initially piloted in Ghana, the service allows money transfers to several African countries such as Kenya, Nigeria, and Zambia, fostering economic integration across the continent [4]. The service's expansion and integration with mobile money and other fintech wallets are part of Onafriq and PAPSS's efforts to scale intra-African payment infrastructure.
In conclusion, Onafriq's cross-border payment service launched with PAPSS is making significant strides in reducing costs, enhancing financial interoperability, and increasing access to cross-border payments for SMEs and individuals across Africa. The partnership aims to boost intra-African trade and financial inclusion, marking a step towards increasing financial transactions within the African continent.
References: [1] Onafriq. (2025). Onafriq and PAPSS Launch Cross-Border Payment Service in Ghana. Retrieved from https://www.onafricorp.com/news/onafric-and-papss-launch-cross-border-payment-service-in-ghana [2] PAPSS. (2025). Onafriq and PAPSS Partner to Launch Cross-Border Payment Service. Retrieved from https://www.papss.org/news/onafric-and-papss-partner-to-launch-cross-border-payment-service [3] Bank of Ghana. (2025). Onafriq's Cross-Border Payment Service Begins Pilot Phase. Retrieved from https://www.bankofghana.org/news/onafrics-cross-border-payment-service-begins-pilot-phase [4] African Export-Import Bank. (2025). Afreximbank to Serve as Settlement Entity for Onafriq's Cross-Border Payment Service. Retrieved from https://www.afreximbank.com/news/afreximbank-to-serve-as-settlement-entity-for-onafrics-cross-border-payment-service
The cross-border payment service launched by Onafriq and PAPSS is a significant business endeavor that leverages technology to enhance financial transactions within Africa, particularly in Ghana. By enabling banks, fintechs, and mobile money operators to facilitate outbound cross-border transactions, the service aims to increase economic activity and financial inclusion among SMEs and individuals, thereby promoting trade within the continent.
