United Bank for Africa (UBA) has become the first African bank to integrate the Pan-African Payment and Settlement System (PAPSS) into its digital payment infrastructure, a move aimed at simplifying cross-border transactions within the continent.

The integration was unveiled at the launch of the Nigeria-Ghana corridor, enabling instant payments in local currencies.

UBA’s AI-powered chatbot, LEO, now supports instant cross-border payments in local currencies between Nigeria and Ghana through PAPSS. The system eliminates the need for dollar conversions and related transaction fees, allowing faster and more cost-effective transfers.

PAPSS, developed by the African Export-Import Bank (Afreximbank) and the African Union, is designed to facilitate instant settlement of local currency payments across African borders. Since its official launch in January 2022, PAPSS has been adopted by several central banks and financial institutions, aiming to strengthen intra-African trade.

The Nigeria-Ghana corridor processed over 16,000 transactions shortly after launch, with Ghana-to-Nigeria payment flows exceeding GHS 121 million, according to UBA reports.

UBA CEO Oliver Alawuba described the integration as a significant step toward deepening regional financial integration and reducing dependency on foreign currencies in African trade. He also emphasized the urgency of deeper regional integration and reducing dependence on Western economies.

This development aligns with the goals of the African Continental Free Trade Area (AfCFTA) Secretariat, which seeks to promote seamless trade and financial inclusion across the continent.