China’s Cross-Border Interbank Payment System (CIPS), an alternative to SWIFT, is rapidly reshaping global finance, especially in Africa and Asia.
On Thursday at the China International Finance Exhibition in Shanghai, officials announced a major expansion of CIPS, extending direct connections to financial institutions in Africa, the Middle East, Central Asia, and Singapore.
China’s payment system redefines cross-border trade
CIPS, China’s alternative to SWIFT, now connects directly with financial institutions in Africa, the Middle East, Central Asia, and Singapore. Standard Bank Group, Africa’s largest financial services company, participated directly for the first time.
“We actually have a lot of clients already asking us, who are anxious for us to launch,” said Anne Aliker, head of client coverage strategy at Standard Bank Group.
This system processes transactions in seconds, slashing costs by up to 98 per cent compared to traditional payment channels like SWIFT, which can take up to five days.
As of Q1 2025, CIPS boasted 170 direct and nearly 1,500 indirect participants, covering 186 countries and regions, with a cumulative payment volume exceeding 640 trillion yuan (about $89 trillion).
Africa’s established mobile banking culture, pioneered by platforms like M-Pesa, uniquely positions the continent to benefit from China’s digital RMB infrastructure.
The digital RMB’s blockchain backbone enables near-instant settlements, making cross-border trade more accessible for large exporters and small businesses.
Digital Yuan and CIPS challenge US dollar dominance
China’s e-CNY is a global impact instrument. China’s People’s Bank has integrated the digital yuan into cross-border pilots to modernise finance and minimise dollar dependence.
The Belt and Road Initiative (BRI) is accelerating this rollout, opening new pathways for the digital yuan in Africa and Asia.
By connecting with CIPS, the digital yuan offers a seamless, fast, and low-cost payment solution for international trade.
“China just flipped the switch on a global financial reset, and the implications are massive for 2025,” reported DMP Global, highlighting how over 1,400 banks in more than 110 countries now participate in this new ecosystem.
China’s expansion of payment systems is already reshaping trade flows. For African exporters in Nigeria, South Africa, and Egypt, instant payments and reduced fees mean more efficient supply chains and greater global competitiveness.
Meanwhile, China’s mobile payment giants Alipay and WeChat Pay continue to drive innovation, integrating AI and blockchain to enhance security and user experience.
Regulatory challenges remain, but China’s phased approach and strategic partnerships signal that its payment system is here to stay. As the US trade war rages on, China’s payment network is quietly redrawing the map of global commerce, one transaction at a time.
