Afreximbank’ Payment Arm PAPSS Unveils Blockchain-Driven Currency Marketplace

Afreximbank’s payment arm, the Pan-African Payments and Settlement System (PAPSS), has introduced a blockchain-powered currency marketplace designed to enable direct exchange between African currencies, thereby eliminating the historical dependence on the US dollar or euro for intra-African trade. The announcement was made on June 26 during Afreximbank’s annual meeting held in Nigeria.

Mike Ogbalu, Chief Executive Officer of PAPSS, explained that this new platform would facilitate currency swaps among African nations without the need to convert through conventional “hard currencies.” This upgrade marks a significant shift in approach from PAPSS’s earlier model, as it focuses entirely on using domestic currencies for trade settlements.

Blockchain infrastructure for a pan-African objective

The system’s architecture relies on the Bantu blockchain, developed by African blockchain infrastructure company Interstellar. The technical implementation was first discussed earlier in June by Interstellar and Bantu Blockchain’s Chief Operating Officer, Victor Akoma-Philips, during a webinar exploring use cases for the naira-pegged stablecoin, cNGN.

Akoma-Philips clarified that the currency marketplace was established to address inherent limitations in the initial PAPSS model, known as the Instant Payment Settlement (IPS) system. Under the IPS framework, commercial banks were required to hold prefunded accounts to manage cross-border trades in local currencies. Despite this local focus, final settlement processes continued to rely on the US dollar, preventing the platform from fully achieving its regional currency independence goals.

According to Akoma-Philips, PAPSS realized that although its mission was to promote intra-African trade through local currencies, the backend processes still required dollar mediation, which compromised the vision of true financial sovereignty. To overcome this structural issue, PAPSS collaborated with Interstellar to create a peer-to-peer payment model that ensures settlements occur strictly in African currencies.

Stablecoin simulations facilitate seamless transfers

Interstellar’s involvement included simulating fiat-backed stablecoins such as the cNGN on the blockchain, which allowed for seamless cross-border transfers denominated in national currencies. Akoma-Philips stated that Interstellar was chosen for the task due to its prior experience in blockchain development and its association with the cNGN stablecoin initiative. These simulations provided the necessary digital representation of local fiat currencies for efficient corporate settlements across the continent.

Prior to its full-scale launch, the currency marketplace underwent pilot testing in Ghana, Nigeria, Kenya, and Cameroon. Following a successful trial phase, the initiative expanded in early 2025 to encompass 19 participating countries. Akoma-Philips also noted that prominent multinational firms such as Huawei, Dangote Group, and Qatar Airways have already adopted the platform for fund repatriation from various African jurisdictions.

Cutting remittance costs and boosting regional trade

The World Bank data from the third quarter of 2024 indicated that Sub-Saharan Africa remained the most expensive region in the world for remittance inflows, with transfer fees averaging 8.45% and in some cases spiking up to 20%. These high transaction costs have long been a deterrent to efficient intra-continental financial flows. The PAPSS currency marketplace aims to alleviate this challenge by offering a cost-effective and direct settlement alternative.

PAPSS was originally launched by Afreximbank in 2022 with the goal of promoting the African Continental Free Trade Area (AfCFTA) by resolving the continent’s fragmented payment infrastructure. With the latest currency marketplace, PAPSS is advancing its vision of a financially integrated Africa, leveraging blockchain to deliver speed, affordability, and autonomy in cross-border commerce.