Africa has marked a significant step towards financial independence following the launch of PAPSSCARD, the continent’s first Pan-African card scheme. Unveiled on June 27 at the 32nd Afreximbank Annual Meetings in Abuja, Nigeria, the new card represents a major leap in Africa’s efforts to achieve financial sovereignty.
The innovative payment system aims to build resilient and independent payment infrastructure while easing cross-border travel and boosting trade integration across the continent.
What is PAPSSCARD and How Does It Work
PAPSSCARD is a joint venture between three key African financial institutions:
African Export-Import Bank (Afreximbank): Africa’s premier trade finance institution supporting continental trade and economic integration.
Pan-African Payment and Settlement System (PAPSS): A cross-border payment and settlement infrastructure for African countries.
Mercury Payment Services (MPS): A leading payment technology provider specializing in card processing solutions.
The card enables fast, secure, and affordable retail payments across African borders, addressing a critical gap in the continent’s financial infrastructure.
Solving Africa’s Payment Processing Challenge
Currently, most African card payments are routed through global payment systems, creating several challenges:
Increased Transaction Fees: External routing leads to higher costs for African consumers and businesses.
Loss of Data Control: Financial data leaves the continent, reducing African institutions’ control over sensitive information.
Economic Value Leakage: Revenue from payment processing flows to international companies rather than staying within Africa.
By processing transactions entirely within the continent, PAPSSCARD keeps value, data, and economic benefits in Africa, creating a more self-sufficient financial ecosystem.
Leadership Vision: Building Financial Autonomy
Speaking at the launch, Professor Benedict Oramah, Afreximbank President and Chairman of the Board of Directors, highlighted the significance of PAPSSCARD in reclaiming Africa’s financial autonomy.
“For too long, Africa’s reliance on external payment systems has impeded trade, increased costs, and compromised control over our financial data. PAPSSCARD changes that. It empowers us to move money swiftly, securely, and affordably across our borders. It is a transformative step towards strengthening intra-African trade and preserving value within the continent.”
A Symbol of Progress and Innovation
Mike Ogbalu III, CEO of PAPSS, described PAPSSCARD as a major advancement in the continent’s financial architecture. He emphasized that the card is “more than just a payment tool, it is a powerful symbol of progress and a bold step towards financial independence.”
The PAPSS CEO noted that the card reflects Africa’s ability to create practical, home-grown solutions that align with how the continent trades, lives, and grows.
Mercury’s Commitment to African Financial Sovereignty
Muzaffer Khokhar, Executive Chairman of Mercury, expressed pride in supporting the African-built payment system:
“We are proud to support a system built by Africa, for Africa. This is about sovereignty, innovation, and building trust in African systems to shape the continent’s financial future. The PAPSS Card will become Africa’s most trusted payments brand, strengthening the backbone of the continent’s financial future.”
Benefits for Multiple Stakeholders
John Bosco Sebabi, Acting CEO of PAPSSCARD, explained that the new payment offering will unlock benefits for various stakeholders:
Corporate Benefits: Reduced transaction costs and improved cash flow management for businesses operating across African borders.
Banking Sector: Enhanced revenue opportunities and reduced dependence on international payment processors.
Merchants: Access to a unified payment system that simplifies cross-border commerce.
Individual Users: Lower fees, faster transactions, and improved financial inclusion across the continent.
Sebabi emphasized that PAPSSCARD will “reduce costs for public institutions, support innovation across the financial sector, and expand access to secure, modern payment tools for people and businesses across the continent.”
Strategic Launch Partnerships
The successful launch of PAPSSCARD was made possible through strategic partnerships with key African financial institutions:
Issuing Banks:
- Bank of Kigali: Rwanda’s leading commercial bank
- I&M Bank Rwanda: Part of the regional I&M Bank Group
Payment Infrastructure Partners:
- Rswitch: Rwanda’s national payment switch
- Smart Cash: Local payment processing solutions
- Unified Payments: Ensuring seamless acceptance throughout Nigeria
Continental Rollout Strategy
African central banks and payment systems are set to spearhead the continent-wide adoption and rollout of PAPSSCARD. This collaborative approach ensures:
Regulatory Alignment: Working with central banks to meet compliance requirements across different African countries.
Infrastructure Integration: Connecting existing national payment systems with the Pan-African network.
Market Penetration: Leveraging established banking relationships for rapid adoption.
Supporting the African Continental Free Trade Area
This initiative significantly advances Afreximbank’s strategy to promote financial inclusion and boost intra-African trade under the African Continental Free Trade Area (AfCFTA).
The AfCFTA represents the world’s largest free trade area by participating countries since the formation of the World Trade Organization. PAPSSCARD directly supports this initiative by:
Reducing Payment Barriers: Simplifying cross-border transactions between African countries.
Lowering Trade Costs: Eliminating expensive international payment routing fees.
Enhancing Financial Integration: Creating a unified payment infrastructure that supports continental trade.
Impact on African Financial Independence
PAPSSCARD represents more than a payment solution – it symbolizes Africa’s growing financial independence and technological capability. The card addresses several critical objectives:
Economic Sovereignty: Keeping financial value and data within the continent.
Innovation Leadership: Demonstrating Africa’s ability to develop world-class financial technology.
Trade Facilitation: Supporting the growth of intra-African commerce and economic integration.
Financial Inclusion: Expanding access to modern payment systems across diverse African markets.
The Future of African Payments
As PAPSSCARD rolls out across the continent, it sets the foundation for a more integrated and self-sustaining African economy. The success of this initiative could inspire similar regional payment systems in other parts of the world.
The card’s launch marks a pivotal moment in Africa’s financial evolution, moving from dependence on external systems to building indigenous solutions that serve African needs and priorities.
With strong backing from continental institutions and strategic partnerships already in place, PAPSSCARD is positioned to become the backbone of Africa’s digital payment future, fostering economic growth and financial inclusion across the continent.
