UBA Tanzania has become the first bank in the country to launch the Pan-African Payment and Settlement System (PAPSS), a platform designed to speed up cross-border transactions and reduce delays for businesses trading across Africa. The system allows companies to transfer money directly using their Tanzanian shilling accounts to make payments in other participating countries, eliminating the need for lengthy correspondent banking chains.
The bank's Head of Operations, Flavia Kiyanga, said the system would make payments more efficient by simplifying transactions and facilitating regional trade. Customers can access the service through bank branches and digital platforms including WhatsApp and Facebook, according to the National Payments Supervisor, Juma Kalumwana. Mobile phone users can initiate transactions without visiting branches, though branch customers must provide the recipient's account details and transfer amount.
For Tanzanian exporters and importers, faster cross-border payments in local currencies could reduce transaction costs and time, making it easier to do business across Africa.