Few African Banks Connected to Payment Network
Importers and exporters trading within Africa should expect uneven settlement options until more banks join the PAPSS network.
Updated on Nov. 5, 2026 in Financial Services
A Deloitte-AFIS survey found that 11% of surveyed African financial institutions are connected to the Pan-African Payment and Settlement System (PAPSS), while 45% have no plans to join. Respondents widely described AfCFTA and PAPSS implementation as too slow, a signal for banks and payment providers operating across African borders.
Why it matters
PAPSS is designed to settle cross-border payments in African currencies and reduce reliance on foreign settlement currencies, which matters for firms paying for intra-African trade, where payment costs are estimated at $5bn a year. Slow adoption means cross-border payment friction is likely to persist for many businesses in the near term.
Among surveyed African financial institutions, 11% are connected to PAPSS and 45% have no plans to join, while 69% of respondents called AfCFTA implementation too slow. African banking revenues reached an estimated $107bn in 2025 with a 17% return on equity, and intra-African trade payments cost an estimated $5bn a year.
The players
Deloitte-AFIS
Deloitte's African Financial Industry Barometer program, which surveys financial institutions across the continent on sector performance and integration progress.
PAPSS (Pan-African Payment and Settlement System)
A continental payment infrastructure that settles cross-border transactions in African currencies and supports trade under the African Continental Free Trade Area.
McKinsey
A global management consulting firm whose banking practice publishes sector research, including its recent report on African banking revenues.
The details
PAPSS is built to let payments between African countries be made in African currencies rather than routed through foreign settlement currencies, which can add cost and delay to trade. The network reports more than 30 connected countries, 24 national and regional central banks, and over 200 commercial banks and payment providers. Survey respondents, however, largely described progress as slow, with only 19% reporting tangible PAPSS progress.
Timeline
November 3, 2026: Preliminary Deloitte-AFIS barometer findings released in Luanda, Angola.
November 3-4, 2026: Africa Financial Summit held in Angola, where the survey was presented.
July: Bank of Central African States joined PAPSS, and SADC added the kwanza as a settlement currency.
May: AfDB Board of Governors approved the NAFAD initiative.
March: McKinsey published its report on African banking revenues.
Market Landscape
The survey measures PAPSS adoption against the African Continental Free Trade Area, the agreement PAPSS was designed to support, and finds the payments layer trailing the trade framework. The gap places PAPSS's next phase, focused on activating the network and scaling transactions, as the key test for whether continental payment integration catches up.
Treasury and finance teams at firms trading across African borders should factor in that many counterparties and banks remain outside PAPSS, so payment routes and settlement costs may stay uneven. Procurement and banking-relationship owners should confirm which local banks and payment providers they can settle through before committing to African trade volumes.
The takeaway
Adoption, not announcement, is the metric to track: watch PAPSS's reported connection and transaction growth figures as its next phase begins. Businesses with significant intra-African payment flows should ask their banks which PAPSS connections are live before relying on the network in contracts.
What happens next
PAPSS's next phase will focus on activating the network, deepening adoption and taking transaction growth to scale, with the chief executive reporting connection and transaction figures in September 2026.
Further reading
For broader context on how cross-border money movement is changing, explore our Financial Services coverage.
Source note: This article includes information reported by Intellinews.
