🌍 A payment from Addis Ababa to Lagos in 120 seconds, in African currencies, without going through New York. Ethiopia has just joined the network that promises to make it possible.
📌 The facts
• Oct. 15: The National Bank of Ethiopia announces that it has joined PAPSS, the pan-African payment system launched in 2022 by Afreximbank, the African Union and the AfCFTA
• PAPSS already connects 29 countries and more than 190 banks and fintechs (FinTech Futures, Oct. 19)
• Stated goal: settlement in under 120 seconds, averaging around 7 seconds, 24/7
• Mobile wallets (telebirr, M-Pesa) are preparing to connect through EthSwitch, subject to prior approval from the central bank
• Addis Ababa will host the COWRY conference on Nov. 26–27, with stablecoins and digital assets on the agenda
🧠 How it works
Today, a payment between two African countries often goes through a bank in Europe or the United States, with two currency conversions into dollars. PAPSS settles payments directly between African banks, in local currencies. A stablecoin like $USDT is just as fast, but everything remains in dollars.
👤 Selam (a fictional character) roasts coffee in Addis Ababa and sells it to a hotel in Nairobi. If her bank or mobile wallet connects, she could be paid in birr without going through the dollar.
⚖️ The caveat
• Joining ≠ service available: each bank and wallet still has to connect
• The 92–95% fee savings are an estimate made by PAPSS itself
• Ethiopian foreign exchange rules still apply
✅ Two options are emerging for payments between Africans: central bank rails and stablecoins.
Which would you choose to get paid? 👇
Not financial advice. DYOR.
Sources: Afreximbank/APO (Oct. 15), FinTech Futures (Oct. 19), Capital Ethiopia.
#Afrique #Paiements #Stablecoins #Ethiopia
📌 The facts
• Oct. 15: The National Bank of Ethiopia announces that it has joined PAPSS, the pan-African payment system launched in 2022 by Afreximbank, the African Union and the AfCFTA
• PAPSS already connects 29 countries and more than 190 banks and fintechs (FinTech Futures, Oct. 19)
• Stated goal: settlement in under 120 seconds, averaging around 7 seconds, 24/7
• Mobile wallets (telebirr, M-Pesa) are preparing to connect through EthSwitch, subject to prior approval from the central bank
• Addis Ababa will host the COWRY conference on Nov. 26–27, with stablecoins and digital assets on the agenda
🧠 How it works
Today, a payment between two African countries often goes through a bank in Europe or the United States, with two currency conversions into dollars. PAPSS settles payments directly between African banks, in local currencies. A stablecoin like $USDT is just as fast, but everything remains in dollars.
👤 Selam (a fictional character) roasts coffee in Addis Ababa and sells it to a hotel in Nairobi. If her bank or mobile wallet connects, she could be paid in birr without going through the dollar.
⚖️ The caveat
• Joining ≠ service available: each bank and wallet still has to connect
• The 92–95% fee savings are an estimate made by PAPSS itself
• Ethiopian foreign exchange rules still apply
✅ Two options are emerging for payments between Africans: central bank rails and stablecoins.
Which would you choose to get paid? 👇
Not financial advice. DYOR.
Sources: Afreximbank/APO (Oct. 15), FinTech Futures (Oct. 19), Capital Ethiopia.
#Afrique #Paiements #Stablecoins #Ethiopia