For PAPSS Participants
Financial intermediaries, commercial banks, fintech companies and payment service providers (PSPs) – Direct Participants and Indirect Participants – who together facilitate cross-border payments for their clients, benefit from:
- a platform for innovation and creativity, increasing access to markets;
- API capability, enhancing scale, performance, security and privacy;
- faster and more efficient customer service;
- no longer requiring multiple correspondent banking relationships in order to perform cross-border payments within the region – just PAPSS;
- analytical information for management reporting from ISO 20022 standard messaging to support informed decision-making.
Types of Participants
There are two types of PAPSS Participants: Direct and Indirect.
Direct Participants maintain a settlement account with the central bank of the country in which they operate in order to effect pre-funding.
Indirect Participants do not maintain a settlement account in the country of operation and will need a relationship with a Direct Participant as they will need the liquidity the Direct Participant can provide to fund or defund clearing accounts.
All Participants must satisfy rigorous entry requirements as set out below.
Central banks are considered to be Direct Participants, acting as the national settlement agent in each country.
Direct Participants are banks and other financial institutions that
- have a settlement account with the central bank of the country in which they operate and
- comply with all financial and regulatory competency requirements of that central bank.
Direct Participants will then need to meet further qualifying requirements.
Indirect Participants may also be banks and other financial institutions, but who do not have a settlement account with the central bank of the country in which they operate. They will, however, be able to enter into individual sponsorship agreements with Direct Participants to facilitate the settlement of payment instructions. Indirect Participants will then need to meet further qualifying requirements.
For African governments
Governments and central banks connecting with PAPSS benefit from:
- easing the pressure on current accounts and decreased foreign exchange liquidity
- increased transparency bringing greater oversight of cross-border transactions, creating more confidence and increasing potential to generate revenue
- enhanced financial inclusion and improved economic growth
Central Bank participation
Central banks play a dual role in PAPSS. They act as the national settlement agent for each country through their Central Bank Settlement Membership and also as a Direct participant with all the benefits that Direct Participants in PAPSS enjoy.
Central Bank Settlement membership
Under their settlement membership, central banks oversee, supervise and enforce compliance of all the Participants – both direct and indirect – in their jurisdiction. They also enforce anti-money laundering and financing of terrorism laws and other local regulations.
Connect with PAPSS
Central banks wanting to provide payment and settlement services through PAPSS must enter into both a PAPSS Membership Agreement and Settlement Bank Agreement.
Click on any CONNECT NOW button to leave your details for the PAPSS team to get in touch and talk you through the process.
Businesses large and small, as well as individuals, whose payments and remittances are being processed through PAPSS benefit from:
- instant/near instant payments across African borders without converting to different currencies
- improved working capital through payment certainty and faster transactions
- access to various payment facilitating options for millions of Africans including those previously underserved
Connecting to PAPSS is a straightforward process. To learn more and start the process of becoming a Direct or Indirect Participant, click on the CONNECT button below.
For those Participants already connected to PAPSS, click below if you need support from us.