ABUJA, Nigeria – On July 7, 2025, the Pan-African Payment and Settlement System (PAPSS), in partnership with African deep-tech firm Interstellar, officially launched the PAPSS African Currency Marketplace (PACM) during the sidelines of the Afreximbank Annual Meetings (AAM2025). This groundbreaking financial market infrastructure (FMI) enables direct, peer-to-peer exchanges of African currencies without routing through hard currencies like the US dollar or euro, addressing a longstanding $5 billion annual trade bottleneck caused by currency inconvertibility, high foreign exchange (FX) fees, and settlement delays.
The platform, built on Interstellar’s enterprise-grade, blockchain-agnostic STARGATE infrastructure, incorporates permissioned blockchain technology for institutional-grade security, scalability, and near-instant settlement. It operates as a transparent, order book-driven marketplace compliant with local regulations and global standards, creating a continent-wide liquidity pool that empowers businesses to trade seamlessly in local currencies.
“This is not just about technology; it is about fulfilling a continental vision,” declared Ernest Mbenkum, Founder and CEO of Interstellar, during a fireside chat at the launch event. “PAPSS African Currency Marketplace was built from the ground up to serve Africa’s specific needs. PAPSS and Interstellar are not just collaborators—we are co-architects of a new financial future, aligned in purpose and committed to transformation.” Mbenkum emphasized the platform's role in elevating African currencies: “African currencies deserve a better place in the world. With this marketplace, your local currency is no longer just a medium of exchange; it becomes a vehicle of opportunity.” He added that PACM marks the start of a broader vision: “We’re building a future where Africa no longer needs to wait for foreign rails to move value. Our infrastructure will power Africa’s financial renaissance.”
Haytham El Maayergi, Executive Vice President – Global Trade Bank at Afreximbank, highlighted the transformative potential for intra-African trade. “The PAPSS African Currency Marketplace gives us the power to transform trade dramatically, bringing us to trade with each other with a major benefit that we can now accept each other’s currency,” he stated. In his keynote, El Maayergi concluded: “Africa will not rise by ideas. Africa will rise by actions.”
Mike Ogbalu III, CEO of PAPSS, explained the platform's origins in addressing persistent challenges beyond initial payment rails. “We soon realized that solving for payments alone was not enough,” Ogbalu said. “Corporations, airlines, reinsurance firms, and multinationals operating across Africa still faced a persistent hurdle: trapped capital, arising from limited currency convertibility and overreliance on hard currencies.” He cited over $2 billion in trapped airline revenues due to repatriation restrictions and currency depreciation. Ogbalu noted growing external interest: “Following positive experiences of some early adopters, PAPSS had received interest from institutions outside Africa seeking to join the ecosystem. This demand proves the value of what we’ve built.”
PACM's impact is already evident from its pilot phase, where more than 80 African corporates successfully transacted across 12 currency pairs, with all settlements in local currencies. A practical example involves Kenya Airways, which earns Nigerian Naira from ticket sales in Nigeria. Previously requiring conversion through a third currency like the USD—incurring fees and delays—the airline can now directly exchange Naira for Kenyan Shillings via PACM. Early adopters include ZEP-RE (PTA Reinsurance Company) and Access View Africa, with the latter describing the platform as “a dream come true.”
The marketplace liberates trapped capital, slashes excessive FX costs by up to 70%, and converts multi-week delays into near real-time execution. It supports same-day settlements and direct currency pairs, freeing businesses from pre-funding scarce hard currencies.
Since its 2022 debut, PAPSS has facilitated real-time cross-border payments in 17 countries, integrating 14 national switches and over 150 commercial banks. Recent expansions include Morocco as the 17th member (July 2025) and Algeria as the 18th (August 2025). PAPSS now offers three solutions: the Instant Payment System (IPS), PACM, and the PAPSSCARD—a Pan-African card scheme launched June 27, 2025.
PACM aligns with the African Continental Free Trade Area (AfCFTA), where intra-African trade reached $220.3 billion in 2024 (14.4% of total trade, up 12.4% year-on-year) but remains stifled by fragmentation across 41 currencies and varied regulations. By domesticating payments, PACM could save Africa over $5 billion yearly in transaction costs, formalize $50 billion in informal trade, and boost competitiveness.
Technically, PACM leverages simulated fiat-pegged stablecoins (e.g., cNGN for Naira) on the Bantu Blockchain for efficient settlements. Pilots in Ghana, Kenya, Nigeria, and Cameroon preceded the launch, involving multinationals like Kenya Airways and Continental RE.
The platform is now open to eligible corporations, financial institutions, treasuries, and market makers. A four-step process—submit request, currency matching, execution, and settlement—ensures transparency. Liquidity providers earn yields, while users access risk tools and dedicated support.
Social media buzz confirms the launch's momentum. PAPSS's official account shared: “Launched the PAPSS African Currency Marketplace (PACM) in partnership with Interstellar – a pioneering platform that enables real-time and transparent exchange of African currencies.” Tech outlets like Technext and Fintech News Africa echoed the news, emphasizing reduced reliance on offshore processing (over 80% of African payments).
Experts predict PACM will accelerate AfCFTA goals, with Sub-Saharan Africa facing the world's highest remittance fees (8.45% average). As Ogbalu stated: “PACM is fully transparent, order book-driven, and operates with trusted counterparties under local regulations and global standards.”
With over 150 banks connected and demand surging, PACM positions Africa for a unified, sovereign financial ecosystem. Eligible participants can onboard via papss.com/marketplace or marketplace.papss.com.
This launch underscores Africa's shift from dependency to self-reliance, proving that continental challenges yield to homegrown innovation.
