KCB Enters African Cross-Border Payment Deal to Support Customers

KCB Group has entered into a deal with a pan-African payment platform to facilitate settlements of cross-border transactions on the continent.

This was agreed upon yesterday with the Pan-African Payment and Settlement System (PAPSS) on the sidelines of the AfreximBank Annual Meeting in Accra, Ghana.

PAPSS offers a reliable and effective method for processing international payments.

The platform, according to KCB Group CEO Paul Russo, would ensure transaction speed, affordability, and dependability, hence enhancing intra-African trade and payments.

“With this agreement, we bring on board our payments and collections expertise spanning over 120 years,” Russo said.

“This means that our customers will now have access to vast economic opportunities that will deliver multiple advantages and efficiencies especially when conducting Intra-African trade payments.”

PAPSS is a centralized Financial Market Infrastructure developed in collaboration with the African Export-Import Bank (Afreximbank) to complement trading under the Africa Continental Free Trade Area (AfCFTA).

By using a straightforward, inexpensive, risk-controlled payment clearing and settlement system, it offers an alternative to the present expensive and drawn-out correspondent banking relationships that promote trade and other economic activities across African countries.

“As a Pan-African banking institution, it is our desire to play a bigger role in facilitating trade across Africa and beyond. With such partnerships, we shall be able to settle our own transactions including those for all its subsidiaries as well as for other commercial banks without many hurdles.” the CEO added.

The platform will benefit intra-African trade payments in several ways, notably by reducing the length and erratic nature of cross-border payments within Africa.

In addition, it eliminates transaction amount limits, lowers the liquidity needs of commercial banks for international payments, and facilitates real-time payments.

As of right now, the platform has at least eight Central Banks, 28 commercial banks, and six switches registered.

Before the end of 2023, it is anticipated to be implemented in the five regions of Africa after a successful trial program in the six nations that make up the West African Monetary Zone.

All African Central Banks are moreover anticipated to join by the end of 2024, followed by all commercial banks by the end of 2025.