Cross-border payments in Africa receive a boost with the introduction of PAPSSCARD, a new initiative aimed at fortifying financial independence across nations.
The African continent witnessed a significant milestone at the 32nd Afreximbank Annual Meetings held in Abuja, Nigeria, with the launch of the PAPSSCARD. This groundbreaking initiative marks the birth of the first Pan-African card scheme, designed to boost financial independence and integration across the continent [1].
The PAPSSCARD is a joint venture between the African Export-Import Bank (Afreximbank), the Pan-African Payment and Settlement System (PAPSS), and Mercury Payment Services (MPS), with the primary purpose of enabling fast, secure, and affordable retail payments across African borders [1].
The PAPSSCARD is more than just a payment solution; it is a tool aimed at promoting financial sovereignty, easing cross-border travel and trade integration, and keeping transaction value, data, and economic benefits within the continent [1]. By processing transactions entirely within Africa, the PAPSSCARD aims to reduce fees and prevent the loss of financial data control [1].
The PAPSSCARD offers several features that set it apart. It enables instant cross-border transactions and fund transfers, allowing the issuance and acceptance of the card at ATMs and point-of-sale terminals across various African countries, starting with Nigeria [1]. The card's transactions are facilitated through partnerships with banks such as Bank of Kigali and I&M Bank Rwanda, Rwanda’s national e-payment switch (Rswitch - SmartCash), and Unified Payments in Nigeria [1][3].
Unified Payments (UP), a Nigerian fintech company, acts as a processor and acquirer for the PAPSSCARD, ensuring seamless acceptance and facilitating real-time payments across borders [1][3].
The expected impact of the PAPSSCARD is transformative. It is anticipated to reduce transaction costs for public institutions and businesses, facilitate economic integration and financial inclusion by expanding access to modern and secure financial services across Africa, and help reclaim financial autonomy by minimizing Africa’s reliance on external payment systems [1][3].
The PAPSSCARD is expected to strengthen intra-African trade by enabling the free flow of money across borders swiftly and securely, ultimately contributing to building a more integrated, self-sustaining, and innovative African financial sector [1][3].
Muzaffer Khokhar, Executive Chairman of Mercury Payment Services, stated that the PAPSSCARD is about sovereignty, innovation, and building trust in African systems [2]. John Bosco Sebabi, Acting CEO of PAPSSCARD, noted that the PAPSSCARD will unlock benefits for banks, corporates, merchants, and individuals [2].
As the PAPSSCARD integrates closely with African central banks and national payment systems, it is poised to drive widespread adoption and become a game-changer for financial independence and intra-African trade [2]. Commemorative cards for the PAPSSCARD were unveiled at the launch, supported by issuing banks including Bank of Kigali, I&M Bank Rwanda, and Nigeria's Unified Payments [1].
The launch of the PAPSSCARD at the 32nd Afreximbank Annual Meetings in Abuja, Nigeria, signifies a significant step towards redefining the African payments landscape, making transactions cheaper, faster, and more secure while fostering economic independence and trade integration among African countries.
References: [1] Afreximbank. (2021). PAPSSCARD: Africa's first Pan-African card scheme launched at Afreximbank Annual Meetings. Retrieved from https://www.afreximbank.com/news/papsscard-africa-s-first-pan-african-card-scheme-launched-afreximbank-annual-meetings
[2] Africanews. (2021). Afreximbank unveils Africa's first Pan-African card scheme at Annual Meetings. Retrieved from https://www.africanews.com/2021/06/27/afreximbank-unveils-africa-s-first-pan-african-card-scheme-at-annual-meetings/
[3] Mercury Payment Services. (2021). PAPSSCARD: A new era of payments in Africa. Retrieved from https://www.mercurypayments.com/resources/news/papsscard-a-new-era-of-payments-in-africa
The PAPSSCARD, a joint venture between Afreximbank, PAPSS, and Mercury Payment Services, is a tool aimed at promoting financial sovereignty in Africa, leveraging technology for fast, secure, and affordable retail payments across borders [1]. By utilizing technology for instant cross-border transactions, the PAPSSCARD aims to reduce fees and minimize financial data control loss within the continent [1].
