Bank of Kigali has partnered with the Pan-African Payment and Settlement System (PAPSS) to revolutionise cross-border transactions across Africa, making it the first bank in East Africa to integrate with PAPSS. Launched in January 2022, PAPSS is a cross-border financial market infrastructure that facilitates payment transactions across Africa. It currently integrates 15 countries and over 150 commercial banks. ALSO READ: How new Pan-African payment system will boost AfCFTA implementation This collaboration enables instant, secure, and cost-effective payments for BK customers throughout the continent. The partnership aligns with the African Continental Free Trade Area (AfCFTA) vision of creating a seamless financial network to remove trade barriers. By utilising the Pan-African payment system, Bank of Kigali customers can now send and receive money in real-time, eliminating the delays and high costs traditionally associated with international transfers. The key benefits of the partnership for customers and businesses include instant transactions, with funds transferred in real-time, improving cash flow for both individuals and businesses. ALSO READ: Bank of Kigali Continues to Empower Communities and Businesses Transactions are also more affordable than traditional international transfers, reducing costs. Customers can receive payments in Rwandan francs (Rwf) and will soon be able to send money in Rwf as well, enabling seamless trade. Enhanced security is also a key feature, as customers can verify recipient details before sending payments, minimising errors and failed transactions. Additionally, the system supports a wide range of currencies, including direct USD payments, offering greater flexibility for cross-border transactions. ALSO READ: Bank of Kigali moves to strengthen business ties, expand reach Diane Karusisi, CEO of Bank of Kigali, explained the significance of the partnership: “This system allows people to send money quickly. For example, if someone sends Rwandan francs from Rwanda, it can reach Ghana in their local currency. “The system converts the currency to meet the local requirements. Entrepreneurs in Rwanda can now receive payments instantly in Rwandan francs or USD from any member country. The service is faster, more affordable, and reliable compared to other cross-border transfer services,” she added. She also noted that the traditional system, where money had to pass through the US before reaching Africa, is now obsolete, and this new system will reduce costs and accelerate transactions. Customers can use internet banking, the BK app, or visit BK branches to send money across borders. PAPSS works with over 150 banks and is looking to expand its network. The Chief Executive of PAPSS, Mike Ogbalu, said that one major challenge in cross-border trade has been the reliance on US dollars. He added, “Our system uses a multilateral net settlement, reducing the amount required for transactions and minimising reliance on global currencies.” Ogbalu emphasised that this system is faster and cheaper than traditional methods, with transactions completed in under a minute. It also removes unnecessary external intermediaries, reducing both costs and delays in African transactions. “Our partnership with banks, especially Bank of Kigali, ensures that we continue to deliver value to the market,” Ogbalu said.
