Access Bank, a tier-1 Nigerian commercial bank with a presence in 22 countries, has announced the launch of Access Africa, a proprietary payment rail designed to enable seamless cross-border transactions across the African continent.

The payment rail, unveiled by Rob Giles, Access Bank's senior retail banking advisor, at a media parley on November 22, aims to connect the bank's customers in 16 key African markets, including Kenya, South Africa, and Nigeria, to major international trade hubs through its physical offices in Asia and Europe. This will facilitate global trade and provide a competitive edge in the sub-Saharan African remittance market, valued at $54 billion in 2023.

Access Bank is also partnering with multiple fintech companies to leverage the payment rail, enabling them to send money across borders. For instance, the bank has partnered with remittance companies to facilitate transfers into mobile wallets in Kenya and to and from China. This strategic move is expected to increase the bank's competitiveness in the remittance market, where it will face stiff competition from stablecoins, remittance infrastructure startups like Zone and Keyrails, and the Pan-African Payment and Settlement System (PAPSS).

The Pan-African Payment and Settlement System, developed by the African Export-Import Bank, enables instant cross-border payments in local currencies across Africa. Ecobank, another pan-African bank present in 33 African countries, also offers a similar payment rail, Rapidtransfer, which allows its customers to send money to each other across these countries.

Access Bank is banking on its extensive presence in 19 African countries and partnerships with fintechs to fend off competitors. According to Giles, "We're using the Access Africa corridor to link countries [the bank is present in]." The bank's strategy is to leverage its existing infrastructure and partnerships to create a seamless payment experience for its customers, setting it apart from other remittance solutions.

The launch of Access Africa marks a significant milestone in the African fintech landscape, as it has the potential to increase financial inclusion and facilitate cross-border trade across the continent. As the remittance market continues to evolve, it will be interesting to see how Access Bank's proprietary payment rail competes with existing solutions and shapes the future of cross-border transactions in Africa.