Fidelity Bank records over N46bn in PAPSS 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, Mr Kevin Ugwuoke, Executive Director and Chief Risk Officer, Fidelity Bank Plc, 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,” Mr 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.
Head of International Operations at Fidelity Bank, Mrs Katherine Oba disclosed that the bank had processed over N46 billion in PAPSS transactions since its 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%.
