A new cross-border payment service piloted in Ghana by Onafriq and the Pan-African Payment and Settlement System (PAPSS) is targeting informal sector participants and small businesses in a bid to formalise regional trade and reduce transaction costs.
The initiative, which is currently being piloted, allows users in Ghana to send money directly into mobile wallets and bank accounts in Nigeria, using the MTN network.
This marks a critical phase in operationalising the 2022 partnership between Onafriq, a pan-African digital payments company, and PAPSS, the continental infrastructure backed by Afreximbank and regional central banks.
The six-month pilot focuses on outbound transactions from Ghana, with plans to expand quickly across more markets in Africa. The service is open to banks, fintech firms, and mobile money operators that are already integrated with Onafriq or PAPSS.
By leveraging PAPSS’s multilateral net settlement system, the platform aims to facilitate payments in local currencies and reduce dependency on third-party currencies like the US dollar.
“Financial interoperability shouldn’t be a luxury,” said Dare Okoudjou, CEO of Onafriq. “If someone can call across borders using just a phone number, they should also be able to send money just as easily. That’s the goal we are working toward.”
The core target for the service includes small and medium-sized enterprises (SMEs) and informal traders who typically rely on cash or third-party remittance services with high fees and slow settlement times.
By digitising these flows, the partners aim to capture a significant portion of the estimated US$100 billion intra-African trade market, much of which remains outside formal financial systems.
Mike Ogbalu III, CEO of PAPSS, explained that the system’s technical architecture is agnostic and can accommodate banks, fintechs, and mobile money platforms across Africa. “Any institution already on our network can participate without the need for new integrations or commercial agreements,” he said.
PAPSS processes transactions using local currencies and nets off flows multilaterally. For instance, if Ghana sends US$5 million to Nigeria while receiving US$4 million in return, only the US$1 million net difference is settled in a third-party currency. This model, according to Mr. Ogbalu, enhances liquidity and reduces exposure to currency volatility.
While PAPSS is not pursuing full de-dollarisation, the system seeks to localise African trade settlement.
“Our aim is not to eliminate the dollar. It’s about ensuring that when Africa trades with itself, it can use its own currencies,” Mr. Ogbalu said.
Cybersecurity and compliance were highlighted as key priorities during the media briefing. Onafriq’s systems are certified under ISO 27001 and 27701 standards and undergo regular penetration testing. Transactions are monitored through AI-based fraud management, sanctions screening, and real-time anomaly detection systems.
Okoudjou noted that success metrics will go beyond transaction volumes. “We are studying usage patterns, particularly among SMEs. We want to know: are we reaching the right people? Are they using it repeatedly? That’s what matters,” he said.
The pilot also serves as a test case for future scalability. With Onafriq’s presence in 43 countries and PAPSS’s growing regional integration, the joint network could eventually reach all 54 African markets. Banks and mobile money operators are being encouraged to activate outbound functionality to expand service coverage.
According to Mr. Okoudjou, the fees on the transactions will be set by individual providers such as MTN Ghana based on commercial terms.
The pilot has received regulatory clearance from the Bank of Ghana, with discussions underway to bring other central banks on board. Full rollout across the continent depends on securing approvals from additional jurisdictions.
Onafriq and PAPSS say their partnership could reshape regional financial inclusion, especially within the ECOWAS bloc, where free movement of people exists but payments remain fragmented. By lowering technical and economic barriers, the companies aim to help cross-border transactions in Africa become as seamless as sending a message.
“There is no trade without payment,” said Mr. Ogbalu. “And until now, the payment side has been a major constraint. We’re now starting to remove that friction.”
