Africa urgently needs to embrace the Pan-African Payment and Settlement System (PAPPS), according to Dr. Valentine Obi, the Founder and Group CEO of eTranzact Global. Calling it the continent’s greatest innovation, Dr. Obi highlighted the importance of PAPPS in facilitating seamless cross-border transactions within Africa.
The platform eliminates the need for converting currencies like the US dollar, British pound, or euro, allowing countries to settle transactions in their local currencies. Dr. Obi emphasized that it is inefficient for a Ghanaian businessperson to convert cedis to dollars for transactions in other African countries, only to convert them back to another currency.
With support for over 40 African currencies, PAPPS is set to revolutionize cross-border trade on the continent. Dr. Obi also expressed his enthusiasm for the advancements in instant payments in Africa, believing that they will propel the continent to new heights in the realm of payments.
Reflecting on eTranzact’s vision to make electronic payments a reality in Africa, Dr. Obi noted the significant shift from cash reliance towards digital payments. This innovation has not only reduced costs but has also enhanced the security and convenience of making payments electronically.
Furthermore, Africa’s electronic payments market is projected to grow by 152 percent by 2025. However, this growth will vary across different regions of the continent, depending on factors such as infrastructure readiness, e-commerce penetration, mobile-money usage, and regulatory frameworks.
In conclusion, the adoption of PAPPS and the evolution of electronic payments in Africa are paving the way for a more efficient and interconnected financial landscape on the continent.
