Fidelity Bank Plc has processed more than ₦46 billion in transactions through the Pan-African Payment and Settlement System (PAPSS), highlighting the growing use of local-currency payment channels for cross-border transactions across Africa.
The bank, which integrated PAPSS into its operations in September 2024, said the platform is helping Nigerian customers make eligible payments to other African countries directly in naira, while recipients receive the equivalent value in their respective local currencies.
According to Fidelity Bank, qualifying transactions can be completed in as little as 120 seconds, although processing times may vary depending on transaction requirements and the receiving market.
The development comes as financial institutions and businesses across the continent increasingly explore payment systems designed to reduce the complexity and cost associated with intra-African trade.
PAPSS was established to facilitate instant or near-instant cross-border payments between participating African markets while reducing dependence on multiple currency conversions and correspondent banks located outside the continent.
For Nigerian businesses, the system provides an alternative channel for settling eligible payments to suppliers, distributors and service providers operating in supported African countries.
The bank said the service also caters to certain permitted personal transactions, including education-related payments and family support, giving individual customers access to the cross-border payment infrastructure.
Fidelity Bank has made the service available through several of its banking channels, including its mobile application, online banking platform and physical branches. Customers can therefore initiate eligible transactions digitally or seek assistance from bank officials.
The bank also said its early adoption of PAPSS positioned it among the first Nigerian financial institutions to satisfy the relevant requirements for integration with the platform.
PAPSS has continued to expand its footprint across the continent. The payment system is currently operational in 19 African countries and connects more than 160 commercial banks and over 15 national payment switches, according to TechCabal.
The expansion of PAPSS comes against the backdrop of efforts to deepen intra-African trade and improve the movement of money between African economies, particularly under the African Continental Free Trade Area (AfCFTA).
By enabling eligible transactions to be settled using local currencies, the system could reduce some of the friction businesses face when paying partners in other African markets.
For Nigerian companies engaged in regional trade, the development could translate into simpler payment processes and improved transaction efficiency, particularly for businesses that regularly deal with suppliers, distributors and service providers across the continent.
The growing volume processed by Fidelity Bank also points to increasing interest in payment infrastructure capable of supporting a more integrated African market, as financial institutions seek to make cross-border commerce faster and more accessible.