PAPSS is the brainchild of Afreximbank, the continent's trade financing institution.

The adoption of the Pan African Payment Settlement System (PAPSS) is expected to boost the continent's current e-commerce growth.

PAPSS, which will launch in 2022 as a digital platform for facilitating cross-border payments in native African currencies while removing intermediaries and conversion fees, arrives at an exciting time for e-commerce.

This is despite issues such as internet connectivity, delivery logistics, and cyber security.

Morris Macharia Musyoka, a notable software engineer and techpreneur, stated that tackling these and other financial difficulties, such as limited access to multi-currency payment platforms and extended settlement periods that impair cash flow, is critical for long-term success.

"The PAPSS emerges as a solution, facilitating payment transactions across Africa without reliance on correspondent banks outside the continent," added the official.

"With over 10 countries and commercial banks adopting PAPSS, the e-commerce sector is poised for substantial growth, potentially challenging, arguably, global giants like Amazon."

PAPSS is the brainchild of Afreximbank, the continent's trade financing institution.

It is a centralised payment mechanism that includes the central banks of participating African countries and enables cross-border transactions to be settled in their respective native currencies.

This eliminates the need for senders and receivers to exchange their local currencies for a third-party currency, such as the US dollar.

Djibouti, The Gambia, Ghana, Guinea, Kenya, Liberia, Nigeria, Sierra Leone, Zambia, and Zimbabwe have all implemented PAPSS through their central banks.

William Ruto, President of Kenya, where the PAPSS headquarters are expected to be housed, has stated that all 54 African Union countries will have embraced the system by February of this year.

Musyoka, located in Kenya, told ITWeb Africa that technical improvements, notably in artificial intelligence (AI), are playing an important role in the evolution of e-commerce.

AI-powered chatbots for customer assistance and machine learning algorithms that predict consumer preferences improve operational efficiency and contribute to a more personalised shopping experience for customers.