In a bid to simplify and streamline cross-border payments in Africa, NLS Tech Solutions and PAPSS (Pan-African Payment & Settlement System) have announced a strategic partnership. This partnership aims to leverage PAPSS’s cross-border financial market infrastructure to facilitate seamless payment transactions across the continent, marking a significant step towards enhancing financial connectivity and accessibility in Africa.
PAPSS works in collaboration with Africa’s central banks to provide a payment and settlement service to which commercial banks, payment service providers, and fintechs across the region can connect as ‘Participants’.
A Closer Look at Africa’s Cross-Border Payments Challenges
PAPSS has identified several challenges to facilitating cross-border transactions in Africa. One, each nation works on a distinct time zone, which frequently causes delays. Funds must pass through several banks first before arriving at their final destination. Such delays impede productivity and raise the possibility of security breaches, leaving customers concerned about the security of their transactions.
The financial burden of cross-border payments is worsened by high bank fees and regulatory charges imposed at each payment border. Furthermore, currency conversion fees make the transactions too expensive for many banks. With a typical payment method taking up to 5 days in some situations, the slow pace of transactions significantly worsens these financial difficulties.
Transparency is also a major issue highlighted. Many customers are often unaware of the actual cost and deductions in each transaction. This lack of information over pricing and fees creates customer uneasiness, undermining trust in the payment process. Without a clear understanding of the expenses connected with cross-border transactions, businesses and consumers alike are subject to surprise charges and hidden fees.
Given these problems, PAPSS and NLS recognized the urgent need for more innovative solutions to ensure openness, efficiency, and security in cross-border payments throughout Africa.
NLS Tech Solutions expressed enthusiasm about the collaboration’s potential to drive positive change in Africa’s financial landscape.
We are excited to combine our expertise with PAPSS and exceedingly transform payments across Africa. Our intention is to empower African banks to thrive and succeed in an interconnected global economy.
-NLS Tech Solutions
This is an exciting era for banks, individuals and businesses across the continent.
Thank you, PAPSS, for this opportunity to work together in redefining the future of cross-border payments in Africa!
Contact our Sales Team today to learn more about this partnership with PAPSS.