…Records Over N46 Billion Pre-Launch Transactions
Fidelity Bank Plc has officially launched the Pan-African Payment and Settlement System (PAPSS) in Nigeria, following an impressive N46 billion in transactions recorded during its early adoption phase.
The launch, which follows the bank’s onboarding of the PAPSS platform in September 2024, marks a major step in facilitating faster, cheaper, and more secure cross-border payments across Africa, particularly for small and medium enterprises (SMEs).
Speaking at the launch event in Lagos, Kevin Ugwuoke, Executive Director and Chief Risk Officer, Fidelity Bank, described the PAPSS partnership as a strategic milestone in removing one of Africa’s biggest trade barriers – cross-border payments.
“As Nigeria’s leading supporter of SMEs, this partnership positions us to serve this critical market segment with even greater efficiency and impact. The role of PAPSS is not just a win for Fidelity Bank, but for the businesses, entrepreneurs, and individuals who trade, transfer funds, and make payments across Africa’s borders,” Ugwuoke said.
PAPSS is designed to enable instant, local currency transactions between African countries, eliminating the need for payments to pass through foreign banks.
This innovation aligns with the African Continental Free Trade Area (AfCFTA) vision by enabling SMEs to trade directly in their own currencies, fostering growth and expanding market opportunities.
Ugwuoke revealed that Fidelity Bank has commenced a customer awareness campaign to highlight PAPSS benefits and will soon extend the service to its mobile and online banking platforms.
“With PAPSS, we are delivering faster cross-border transactions, reducing reliance on foreign currency, enabling more predictable cash flows, and, above all, empowering our customers to grow their businesses across the continent with greater confidence,” he added.
Katherine Oba, Head of International Operations at Fidelity Bank, disclosed that the bank had processed over N46 billion in PAPSS transactions since adoption. The system completes settlements within 120 seconds, allowing senders to pay in local currency while recipients receive funds in theirs.
“For example, a customer sending money from Nigeria to Ghana will have their account debited in Naira, while the recipient receives Cedis. This also means exporters can now receive payment in Naira for goods sold across Africa, with such settlements recognized under the CBN’s export procedures. Transaction fees are also competitive,” Oba noted.
According to PAPSS, Africa loses more than $5 billion annually in payment processing costs due to reliance on external systems, with intra-African trade accounting for only 13–16% of total trade – far below Asia’s 60% and Europe’s 70%.
Speaking on the launch with Fidelity Bank, Mike Ogbalu, Chief Executive Officer at PAPSS, highlighted that the platform is built to global standards but owned and governed by Africans.
“PAPSS is the realisation of a vision over 60 years in the making – to give Africa its own payment infrastructure, thus curbing the excess processing costs. Today, PAPSS is integrated into the core systems of several central banks and over 150 commercial banks across Africa, with Fidelity Bank as one of the first in Nigeria to meet all requirements,” Ogbalu said.
“We see Fidelity Bank as a key partner in achieving this goal and look forward to extending this collaboration to SMEs, individuals, large corporates, and governments across Africa,” Ogbalu added.
With this launch, Fidelity Bank strengthens its position as a leading driver of innovation in the African financial services landscape, offering its customers a powerful tool to trade, invest, and grow beyond borders.