When Africa has its own Scheme

Winning autonomy and countering the domination of American schemes (payment networks) is now a battlehorse for Europe, but also for Africa. And the continent recently realized its ambition to harmonize its payment systems in order to offer a local alternative to networks such as Visa and Mastercard.

FACTS

• At the 32nd annual Afreximbank meetings in Abuja, Nigeria, held on 27 June, Africa announced the launch of PAPSSCARD, the continent's first pan-African map system.

• PAPSSCARD is based on the creation of a joint venture between the African Import-Export Bank (Afreximbank), the Pan-African Payment and Settlement System (PAPSS) and Mercury Payment Services (MPS).

• This new independent system is based on a map designed to guarantee Africa's financial sovereignty. It must allow fast, secure and affordable payments across African borders. It is intended for governments, banks, traders and individuals.

• According to the communiqué, African central banks and payment systems are already involved in piloting the deployment of PAPSSCARD across the continent.

ISSUES

• Harmonize : The primary objective of PAPSSCARD in launching a pan-African card payment system is obviously to harmonise national systems to propose an interoperable model between states.

• Gaining autonomy : The PAPSSCARD joint venture is presented as a local solution that can be used as an alternative to the American card networks currently dominant on African territory as well as more widely internationally. PAPSSCARD should thus enable the African continent to gain autonomy, avoid external costs and loss of control over local payment data.

• Promoting the local economy As a full member of the PAPSSCARD joint venture, Afreximbank stresses that the deployment of this local payment solution also aims to promote financial inclusion and stimulate intra-African trade within the African Continental Free Trade Area (AFTAA).

PERSPECTIVE

• The project carried out today by the African continent is close to that advocated by the European Central Bank with regard to the development of an interoperable payment solution between the countries of the continent.

• EPI and EuroPA And that is the promise. While their projects, initially separated, seemed fratricidal and counterproductive, their recent rapprochement demonstrates their true common commitment and today has real hope for the creation of a harmonised and autonomous payment system at European level.

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