DAR ES SALAAM: TANZANIAN businesses trading across Africa are set to benefit from faster payments and easier access to regional markets following the launch of a system that enables cross-border transfers in local currencies.
The Pan-African Payment and Settlement System (PAPSS), introduced by UBA Tanzania, aims to simplify transactions, reduce payment delays and eliminate the lengthy chain of correspondent banks traditionally involved in cross-border transfers.
Speaking during the launch in Dar es Salaam, UBA Tanzania Head of Operations Ms Flavia Kiyanga said the system would make payments more efficient by allowing businesses to transfer money directly across participating African markets.
She said businesses could use their Tanzanian shilling accounts to make payments in other participating countries, reducing transaction time and facilitating regional trade.
UBA Tanzania National Payments Supervisor, Mr Juma Kalumwana, said customers could access the service through bank branches and digital platforms, including WhatsApp and Facebook.
He said customers could initiate transactions using their mobile phones without visiting branches, while those seeking branch services would need to provide the recipient’s account details and transfer amount.
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UBA Tanzania Head of Marketing and Communications, Mr Geofrey Magugi, said the bank was the first in Tanzania to sign an agreement with PAPSS to offer the service.
He said the initiative would simplify crossborder payments and create more opportunities for businesses to trade across Africa.