Nigeria’s fintech pioneer Unified Payments (UP) has struck a major deal with Pan‑African Payment and Settlement System (PAPSS), positioning itself as a cornerstone for Africa-wide commerce. Under the agreement:
UP will serve as the processor for PAPSS co-branded cards (the new PAPSSCARD), enabling banks and deposit-taking institutions to issue and distribute them.
It will act as the acquirer, allowing merchants in UP’s network to accept PAPSSCARD for payments at ATMs and retail locations.
UP will function as a payment switch for real-time transfers across Africa via the PAPSS network, letting customers send and receive funds instantly between African countries.
With this partnership, UP becomes the first Nigerian entity to enable merchants to accept the PAPSSCARD and support instant cross-border transactions through its existing network.
As UP’s CEO said, they are “delighted to contribute to the ease of doing business in Nigeria and across Africa through the partnership with PAPSS.” Meanwhile, the CEO of PAPSS welcomed the link-up, noting Nigeria’s strategic importance and praising UP’s successful proof-of-concept during the recent continental banking gathering.
What Is PAPSS And Why It Matters
PAPSS is a centralized financial-market infrastructure created by African Export-Import Bank (Afreximbank) to simplify and accelerate cross-border payments in local African currencies. Before PAPSS, traders and businesses often relied on third-country currencies (like USD or EUR) and correspondent banks for cross-border settlements, a system that was costly, risky, and slow.
Now, through PAPSS (and its payment tools like PAPSSCARD and its instant payment rails), companies and individuals can transact directly across African borders in their own currencies, reducing costs, reducing reliance on foreign exchange, and speeding up trade.
This is especially significant under the continent-wide trade framework African Continental Free Trade Area (AfCFTA), which aims to boost intra-African trade. PAPSS lowers one of the biggest frictions (payments and FX conversions), thus helping turn AfCFTA’s potential into reality.
Pioneering Payments in Nigeria Now Pan-African
UP (Unified Payments) has a long history of payment innovations in Nigeria. Founded in 1997, it introduced, among other firsts, EMV Chip-and-PIN cards, near-field communication (NFC) for contactless payments, POS and ATM withdrawals via just phone numbers, and mobile/USSD banking across multiple banks.
Because of its established infrastructure and experience, PAPSS found in UP a ready partner to expand across Nigeria and beyond. This agreement means that UP isn’t just supporting domestic fintech; it’s becoming a gateway for pan-African commerce.
By integrating with PAPSS, UP helps slash costs and delays tied to currency conversion and correspondent banking, potentially saving African businesses billions annually. That boosts intra-African trade under AfCFTA, reduces dollar dependency, and strengthens local currencies, which could improve trade balances and help stabilise foreign-exchange reserves continent-wide.
