Africa's inaugural continental card scheme, PAPSSCARD, debuts, with a mission to revolutionize cross-border commerce.
In a significant move towards financial independence and integration, the African Export-Import Bank (Afreximbank), the Pan-African Payment and Settlement System (PAPSS), and Mercury Payment Services (MPS) have jointly launched PAPSSCARD, the first Pan-African card scheme on the continent [1][2][3]. This groundbreaking initiative aims to improve cross-border payments and boost intra-African trade by providing a locally controlled payment system that reduces reliance on external payment networks.
PAPSSCARD is designed to facilitate swift, secure, and affordable cross-border transactions within Africa, addressing Africa's dependence on external payment systems, which have been a barrier to the growth of intra-African trade [4]. Professor Benedict Oramah, President and Chairman of the Board of Directors at Afreximbank, emphasized this point, stating that PAPSSCARD is about asserting sovereignty, driving innovation, and fostering trust in African financial systems [1].
Key Features and Benefits of PAPSSCARD: - **Local Processing**: PAPSSCARD processes payments entirely within Africa, keeping economic benefits and data within the continent. This helps maintain financial sovereignty and supports the implementation of the African Continental Free Trade Area (AfCFTA) [1][2]. - **Interoperability**: It connects national payment systems across Africa, acting as both a payment card and an interoperable switch. This facilitates seamless transactions between different countries, enhancing financial integration and reducing transaction costs [2][4]. - **Financial Inclusion**: By providing a secure, modern payment tool, PAPSSCARD is expected to drive financial inclusion and support innovation in the financial sector across the continent [1][2]. - **Stakeholder Benefits**: It offers benefits to corporates, banks, merchants, and individuals by reducing costs, supporting innovation, and expanding access to secure payment tools [1][2].
Meanwhile, the Central Bank of Nigeria has introduced its own card scheme named AfriGO. The roll-out of AfriGO is expected to be spearheaded by central banks and payment infrastructure providers throughout the continent, with banks such as Sterling Bank and Access Bank already issuing AfriGO cards [5]. AfriGO's collaborations and issuance of cards indicate its growing presence in the Nigerian market.
The competition between AfriGO and PAPSSCARD may lead to innovation in the African payment industry, as the success of AfriGO could potentially influence the adoption of other domestic card schemes across Africa [6]. Muzaffer Khokhar, Executive Chairman of Mercury, expressed that PAPSSCARD is expected to emerge as Africa's most trusted payment brand and serve as a pillar of the continent's financial progress [1].
The African Continental Free Trade Area (AfCFTA) has focused on enhancing trade within the continent, with cross-border payments becoming a key focus area. The roll-out of PAPSSCARD and AfriGO may impact the strategic partnerships established for PAPSSCARD's deployment, as well as the market share of PAPSSCARD within Nigeria. The competition between these two initiatives highlights the growing focus on local payment solutions in Africa.
In conclusion, the launch of PAPSSCARD and the introduction of AfriGO mark significant steps towards financial independence and integration within Africa. These initiatives are poised to revolutionize the African payment landscape, enabling quick, secure, and affordable cross-border transactions, thereby preserving value within the continent.
[1] https://www.afreximbank.org/news/press-releases/papss-and-mercury-launch-papsscard-africa-s-first-pan-african-card-scheme [2] https://www.afreximbank.org/news/press-releases/papss-mercury-announce-launch-papsscard-africa-s-first-pan-african-card-scheme [3] https://www.afreximbank.org/news/press-releases/papss-mercury-announce-launch-papsscard-africa-s-first-pan-african-card-scheme [4] https://www.bloombergquint.com/global-economics/2022-11-07/africa-s-first-pan-african-card-scheme-is-a-step-towards-financial-independence [5] https://www.bloombergquint.com/global-economics/2022-11-07/africa-s-first-pan-african-card-scheme-is-a-step-towards-financial-independence [6] https://www.afreximbank.org/news/press-releases/papss-and-mercury-launch-papsscard-africa-s-first-pan-african-card-scheme
The PAPSSCARD initiative, a joint effort by Afreximbank, PAPSS, and MPS, demonstrates an endeavor to enhance cross-border finance within Africa by providing a local control payment system for business transactions. In the realm of technology, PAPSSCARD showcases innovation in the African payment industry, aiming to streamline cross-border payments and boost intra-African trade.
