In a daring bid to lower cross-border trade obstacles, Onafriq is collaborating with the Pan-African Payment and Settlement System (PAPSS) to pilot wallet-based outbound payments from Nigeria to Ghana.
According to the fintech, the service aims to enable payments to be made fully in Naira without relying on hard currency conversion, in partnership with banks and mobile money operators.
The pilot service, which will be fully operational for six months from 1 December, is approved by the Central Bank of Nigeria and enables cross-border intra-Africa payments for individuals, merchants, and traders.
In particular, the initiative will benefit SMEs, allowing them to have a cost-effective way to reach customers and suppliers across the border.
Onafriq has stated that currently, the continent is made up of bank and mobile-led markets, with silos often inhibiting transactions between these economies.
However, the company says this partnership will remove these boundaries.
Onafriq said with over one billion mobile wallets and 500 million bank wallets across Africa, this move will allow for cross-border collaboration at scale.
It went on to add that through the partnership with PAPSS, it is supporting the operationalisation of the Africa Continental Free Trade Area mandate.
Meanwhile, PAPSS brings a network of over 160 commercial banks, representing an ecosystem of more than 400 million bank accounts across its 19 African countries of operation.
Mxolisi Msutwana, managing director, Onafriq Anglophone West Africa, commented: “Our work with PAPSS shows what collaboration at scale can unlock, seamless, secure connections between banking systems and mobile money ecosystems.
“This is how we open bi-directional trade corridors, reduce costs for businesses, and give African enterprises the rails they need to trade with confidence in their own currencies. The vision is continental, but it starts with practical steps like this one.”
Ositadimma Ugwu, chief information officer, PAPSS, said: “Too often, African businesses and individuals see borders as roadblocks instead of opportunities. With this step, we are challenging that mindset, giving Nigerians the ability to send value next door with the same ease as sending a text message.
"Our vision is simple; make Africa’s borders invisible to payments. This pilot makes that a reality, moving us closer to a continent where payments don’t pause at the border.”
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