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… record on pre-launch transactions N46 billion
Fidelity Bank Plc officially launched the Panofricano payment system and regulation (Paps) in Nigeria, following an impressive N46 billion transactions recorded during its early adoption phase.
The launch, which follows the onboarding of the Paps platform bank in September 2024, marks a big step to facilitate faster, cheaper and safer cross -border payments throughout Africa, in particular for small and medium -sized enterprises (SMEs).
Speaking at the launch event of Lagos, Kevin Ugwuoke, executive director and Chief Risk Officer, Fidelity Bank Plc, described the Papress partnership as a strategic milestone to remove one of the greatest commercial barriers of Africa-cross-border expanse.
“As the main supporter of Nigeria delle SME, this partnership positions us to serve this critical market segment with greater efficiency and impact. The role of Paps is not only a victory for Fidelity Bank, but for businesses, entrepreneurs and individuals who trade, transfer funds and make payments through the borders of Africa,” said Ugwuake.
Ponse is designed to allow local currency transactions between African countries, eliminating the need to pass payments through foreign banks. This innovation aligns with the African free exchange from the continental free exchange (AFCFTA) allowing SMEs to trade directly in its currencies, promoting growth and expanding market opportunities.
Ugwuoke revealed that Fidelity Bank has launched a customer awareness campaign to highlight the advantages Paps and soon extend the service to its mobile and online banking platforms.
“With dads, we are offering faster cross -border transfrontier transactions, reducing dependence on the foreign currency, allowing more predictable cash flows and, above all, allowing our customers to grow their activities throughout the continent with greater trust,” he added.
The head of international operations at the Fidelity Bank, Ms Katherine Oba revealed that the bank had developed over N46 billion of Dutch transactions from her adoption. The system completes the settlements within 120 seconds, allowing the senders to pay in local currency while the recipients receive funds in theirs.
“For example, a customer who sends money from Nigeria to Ghana will have their account charged to Naira, while the recipient receives Cedis. This also means that exporters can now receive payment in Naira for goods sold in Africa, with these settlements recognized pursuant to the export procedures of the CBN. Even the transaction commissions are competitive”, noted OBA.
According to paps, Africa loses over 5 billion dollars a year in the costs of processing payments due to dependence on external systems, with intra-African trade which represents only 13-16% of total-sized trade below 60% of Asia and 70% in Europe.
Speaking at the launch with Fidelity Bank, Mike Ogbalu, Ponse’s CEO, stressed that the platform is built according to global standards but owned by the Africans.
