A new cross-border payment service that will initially pilot outbound transactions in Ghana has been launched by Onafriq with the support of the Pan-African Payment and Settlement System (PAPSS).
Onafriq has made this possible by leveraging PAPSS infrastructure and regulatory coverage to offer its fintech, mobile money, and traditional partners in Ghana unparalleled access to cross-border payment capabilities.
By participating in this arrangement, these partners benefit from the safeguards and efficiency of PAPSS’s framework. The African Export-Import Bank (Afreximbank) serves as the settlement entity, ensuring trusted and timely settlement between parties.
A statement from the organisation said the new cross-border payment service is with immediate effect, allowing banks partnering with PAPSS and Onafriq’s authorised fintech, mobile money service providers and traditional partners in Ghana to enable their customers to send and receive money directly into mobile wallets and bank accounts.
This is expected to address the existing challenges of high transaction costs and opaque exchange rates, while further integrating informal cross-border transactions into the formal payment systems. The primary emphasis of this new service will be on small and medium-sized enterprises (SMEs) and retail transactions.
The service will promote intra-African cross-border trade and enhancing financial inclusion, and improve financial interoperability by making transactions faster, more convenient, and cost-effective for SMEs and individuals.
“We are excited to be taking another step in operationalising our important partnership with PAPSS to bring this innovative cross-border payment solution to our users.
“This service is not just about convenience; it brings people together and enhances economic activity between Ghana and the region.
“We are dedicated to making financial services accessible to everyone and are proud to be at the forefront of this transformation. African borders are starting to matter less; this is Onafriq’s goal,” the chief executive of Onafriq, Mr Dare Okoudjou, said.
His counterpart at PAPSS, Mr Mike Ogbalu III, said, “Today marks a significant milestone in our journey towards a more integrated financial landscape in Africa.
“Our partnership with Onafriq represents a commitment to empowering SMEs and individuals by simplifying cross-border transactions. We believe this service will help reduce the liquidity burden on participants while fostering financial inclusion across the region.”
The six-month pilot program – approved by the Bank of Ghana (BoG) – will allow Onafriq and PAPSS to assess transaction flows, user adoption, and foreign exchange performance while delivering better rates and more accessible services to customers.
This launch deepens the long-standing collaboration between Onafriq and PAPSS and reinforces their shared commitment to building infrastructure that empowers African businesses, individuals, and financial institutions across the continent. The service will soon be available on mobile money and other fintech based wallets.