United Bank for Africa (UBA) has enabled its AI chatbot, LEO, to conduct cross‑border payments, marking a first for Africa’s banking landscape. Powered by the Pan‑African Payments and Settlement System (PAPSS) — a platform developed by Afreximbank and the African Union — this innovation allows individuals, traders, and corporations to transfer funds across participating African countries using their local currencies, in seconds. UBA positions this milestone as both a digital breakthrough and a strategic enhancement to Pan‑African economic integration.

What PAPSS Enables: The Infrastructure Behind LEO

PAPSS launched in January 2022 as a continental Real‑Time Gross Settlement system designed to facilitate intra‑African payments in local currencies, avoiding dependence on external currencies like the dollar or euro. It addresses long-standing friction in continental trade, reducing costs—historically as high as 30% per transaction—to near 1% by enabling seamless payments without foreign exchange intermediaries .

By mid‑2025, the PAPSS network had expanded to include 15 central banks and over 150 commercial banks, with recent onboarding from Kenya’s KCB Group and Rwanda’s Bank of Kigali. Upcoming enhancements like the PAPSS FX Marketplace and PAPSSCARD are poised to further boost regional financial integration.

LEO’s Latest Upgrade: Features & Benefits

According to UBA, LEO now supports:

• Instant transfers, completed in seconds

• Use of local currencies, eliminating forex conversion hassles

• Lower transaction costs

• Zero beneficiary charges

• Enhanced security and confidentiality via digital authentication

• Access through self‑service channels—mobile, online, or chat interface

These enhancements foster faster, cheaper, and more accessible intra‑African payments, aligning directly with the goals of the African Continental Free Trade Area (AfCFTA).

UBA’s Strategic Vision

As Africa’s Global Bank, UBA emphasises pushing digital boundaries and meeting African consumer needs. Group CEO Oliver Alawuba described LEO’s upgrade as “a bold leap into the future of African finance,” reflecting UBA’s commitment to digital innovation and Pan‑African integration.

Digital banking head Shamsideen Fasola added that LEO’s PAPSS integration enhances security, confidentiality, and broadens remittance options. He underscored that UBA is not just simplifying transactions—it is promoting intra‑African trade and dismantling financial inclusion barriers.

Empowering Customers and Businesses

With PAPSS-enabled LEO, UBA is empowering:

1. Individuals sending money to family across borders

2. Small traders and MSMEs managing payments to suppliers or logistics partners

3. Corporates engaging in regional trade under the AfCFTA framework

The chatbot offers instant, affordable, and local-currency payments, formalising previously opaque cross-border trade flows and reducing economic friction.

African Market Integration in Motion

PAPSS represents a foundational infrastructure underpinning African economic integration. By enabling intra-African payments in local currencies, it eliminates the need for hard-currency intermediaries and streamlines trade.

The expanded adoption of PAPSS by African banks, including UBA, signals a shift toward a resilient, interconnected financial ecosystem. Upcoming features—the African Currency Marketplace (FX platform) and continent-wide PAPSS card scheme—underscore this momentum.

A Reuters analysis highlights the geopolitical and economic significance: bypassing the US dollar reduces transaction cost burdens and empowers Africa to control its own trade systems.

Context: UBA at the Forefront of Innovation

UBA ranks among Africa’s most influential banks, employing over 25,000 people and serving more than 45 million customers. The bank operates in 20 African countries as well as the UK, USA, France, and UAE.

The launch of PAPSS payments via LEO follows several recent digital initiatives, including UBA’s expansion in priority African markets and fintech service launches aiming to support enterprise and personal banking solutions.

What This Means for Africa

This development marks a watershed moment:

• Trade facilitation: Streamlined, lower‑cost payments enable intra‑African trade under AfCFTA

• Financial inclusion: Wider access to cross-border transfers for individuals, traders, and SMEs

• Currency sovereignty: Reduced dependency on foreign exchange through local-currency-based transactions

• Digital transformation: AI-powered banking reshapes customer experiences across the continent

The broader PAPSS strategy could save African economies an estimated $5 billion annually—a significant infusion for growth and competitiveness.

Challenges Ahead

Though PAPSS-I LEO integration is promising, adoption will depend on:

• Regulatory alignment: Central Bank approvals required in all markets

• Technical readiness: Fintechs and mobile money providers need onboarding to the PAPSS ecosystem

• User confidence: Building trust in secure and reliable chatbot-enabled transactions

• Awareness: Educating businesses and individuals on the benefits and usage of local-currency cross-border payments

Looking Forward

UBA’s launch of PAPSS cross-border payments via LEO places it at the vanguard of continental banking innovation. This move strengthens its ambition to be the digital bank of choice for Africa.

Future milestones could include:

• FX Marketplace launch (2025): Enabling local-currency matching between trading partners

• PAPSSCARD rollout: A continental card scheme for seamless cross-border payments

• Fintech integration: Inclusion of smaller banks and mobile money services into the PAPSS network

Conclusion: A Digital Leap for African Finance

With LEO’s new PAPSS functionality, UBA offers an advanced, user-friendly, and cost-effective solution for cross-border transactions. This innovation not only benefits individuals and businesses but also accelerates Pan-African economic cohesion under AfCFTA.

As PAPSS adoption grows and more financial institutions integrate, Africa edges closer to a future of interconnected, resilient, and self-reliant financial systems—one transaction at a time.