PayPal Returns to Africa with $100 Million Fintech Investment Starting in Nigeria
US-based digital payments giant PayPal has announced its return to the African market through a new initiative launching in Nigeria, involving a $100 million investment in partnerships and acquisitions with local fintech companies. The move aims to strengthen PayPal’s presence and growth across the continent following a period of weaker performance in recent years.
The initiative, branded “PayPal World,” is designed to integrate PayPal’s services with local digital wallets through partnerships with Nigerian payment solution providers. This integration enables users to conduct domestic and international transactions securely and seamlessly, without the need for foreign bank accounts or complex external payment solutions.
In Nigeria, PayPal revealed a strategic partnership with local fintech company Paga, allowing users to link their PayPal accounts to Paga’s digital wallets. This connection provides access to PayPal’s global network of more than 400 million users worldwide. Customers can now receive international payments directly, withdraw funds in local currency (the naira), and transact across Paga’s network without relying on complicated transfer methods.
The move marks a significant return for PayPal in Nigeria after nearly two decades of restrictions previously imposed due to fraud concerns and weaknesses in the country’s digital identity infrastructure. At the time, these concerns limited PayPal’s services to outbound payments only, restricting full functionality for local users.
Analysts believe PayPal’s renewed focus on Africa reflects the company’s strategy to tap into new growth markets amid slowing payment volumes in traditional markets, especially as digital payments gain momentum across the continent.
The initiative comes at a time when Africa’s digital payments sector is experiencing rapid growth, driven by the expansion of mobile wallets and smartphone-based payment services, positioning the region as a highly attractive market for global fintech players seeking to expand their footprint.