A trial of the Pan Africa Payment and Settlement System (PAPSS) has revealed that payment transactions on the platform can be completed in 120 seconds, the Deputy CEO of PAPSS John Bosco Sebabi has said.
According to him, the impressive transactional time of the payment platform is one that should encourage businesses especially Small and Medium Enterprises (SMEs) to formalize and take advantage of the Africa Continental Free Trade Agreement (AfCFTA).
He made this known at the 115th Meeting of the Greater Accra Shipper Committee of the Ghana Shippers’ Authority (GSA).
He revealed that under the West African Monetary Zone made up of six (6) member states – The Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone – so far, six (6) Central Banks have piloted the system, nineteen (19) Commercial Banks have signed up; six (6) Switches have signed Technology Connectivity Agreement and twenty (20) FinTechs have also been enrolled onto the PAPSS platform.
PAPSS is a centralised payment and settlement infrastructure for intra-African trade and commerce payments. This project which is being developed in collaboration with the African Export-Import Bank, Afreximbank will facilitate payments as well as formalise some of the unrecorded trade due to prevalence of informal cross-border trade in Africa.
Mr. Sebebi said the detailed rollout of the platform reinforces the benefits of PAPPS for cross-border payments which includes cost reduction; reduction in duration and time variability; decreasing liquidity requirements of commercial banks; decreasing liquidity requirements of central banks for settlement as well as its own payments; and strengthening Central Banks’ oversight of cross border payment systems.
The Assistant Manager, Participants and Memberships Management at PAPSS, Noel Adja said all the necessary boxes have been ticked to ensure that the platform is not only safe but is robust to support the goals of AfCFTA.
He further added that the platform would not only serve businesses but also offer the opportunity for cross border utility payments.
The Head of the Shipper Services and Trade Facilitation Department of GSA, Mrs. Monica Josiah expressed gratitude for the in-depth presentation on PAPSS on behalf of members of the Greater Accra Shipper Committee and called for the presentation to be replicated across the country.