The Pan-African Payment and Settlement System (PAPSS) has launched a new product called the African Currency Marketplace to boost real-time cross-border payments across Africa. The product, which went live on June 26, 2025, allows businesses to settle transactions directly in local African currencies. This means businesses no longer need to convert payments through foreign currencies like the US dollar or the euro.
PAPSS introduced the platform during the 2025 Afreximbank Annual Meeting. Built on the Bantu blockchain, the system supports up to 42 African currencies and was developed by Interstellar, a pan-African technology company.
Blockchain Powers Direct Local Currency Exchange
According to Interstellar CEO Ernest Mbenkum, the new platform aims to solve the payment problems that businesses across Africa face. By using blockchain, PAPSS allows businesses and banks to exchange local currencies quickly and securely.
“We used this technology to build Bantu Blockchain, and we partnered with central banks and commercial banks to address Africa’s payment challenges,” Mbenkum said.
The African Currency Marketplace will reduce the high costs and long delays caused by converting local currencies into foreign ones. This system supports the African Continental Free Trade Area (AfCFTA) by making payments easier for African businesses.
Stablecoins like cNGN Could Drive Growth
One major benefit of this new platform is the possible growth of stablecoins in Africa. A stablecoin is a digital version of a local currency backed by reserves. The cNGN, which is linked to the Nigerian naira, is already active on the Bantu blockchain. More than ₦52 million (about $33,800) worth of cNGN has already been created.
Since Interstellar is a key member of the cNGN project, it may be easier to bring more stablecoins for other African currencies onto the platform. This will improve liquidity and access, especially for countries with rarely traded currencies.
Currency Fragmentation Costs Africa Billions
Africa has 42 national currencies, which leads to 861 different payment routes for businesses. But most of these routes don’t work directly. For example, a business in Kenya that wants to pay a supplier in Senegal must first convert Kenyan shillings to US dollars, then to West African CFA francs. These extra steps add costs and delays.
As a result, Africa loses around $5 billion each year to these inefficient payment systems.
One industry affected is aviation. Airlines often struggle to move their earnings because of strict currency rules. In June, the International Air Transport Association (IATA) reported that $1.8 billion of airline funds are stuck in Africa.
PAPSS CEO Mike Ogbalu has stressed the need for better cross-border payment tools to solve such issues.
Regulatory Challenges Still Remain
PAPSS also faces two key problems:
- Regulatory fragmentation – Every country has different rules for payments and fraud checks.
- Mistrust in financial systems – This makes governments slow to approve new methods like licence passporting. In Africa, financial companies must get approval in each country. In contrast, Europe allows one licence to work across 27 countries.
This slow approval process keeps many payment routes underdeveloped, especially for less common African currencies.
PAPSS Gains Support From African Central Banks
Launched in 2022 by the African Export-Import Bank (Afreximbank), PAPSS now has 15 African central banks and 12 payment switches on its network. It has also onboarded 56 commercial banks in countries such as Ghana, Liberia, Gambia, Sierra Leone, Guinea, Zimbabwe, and Djibouti. Banks in Tunisia, Comoros, Uganda, and Egypt are also joining the network.
Some central banks are pushing for faster adoption. In April, the Central Bank of Nigeria (CBN) ordered commercial banks to join PAPSS. By May, 22 Nigerian banks had joined and are now using the platform.
This also marks the first time that African governments are using blockchain technology on a multinational level.
While PAPSS is gaining support from governments and big banks, it still needs to reach small businesses and everyday Africans. Experts say the next challenge is getting consumers and local entrepreneurs to use the platform. This grassroots adoption could be the key to making Africa’s digital payments faster, cheaper, and more inclusive.
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