Onome Amuge
Nigeria’s digital economy is entering a new phase as local fintech firms deepen partnerships with global payment giants to unlock cross-border value for businesses and individuals. The latest example is the live account-linking integration between Paga, Nigeria’s pioneering fintech company, and PayPal, the global payments and commerce platform.
The integration is aimed at enabling Nigerians to link their PayPal accounts directly to their Paga digital wallets, receive international payments, and withdraw funds locally in naira. But beyond convenience, the development highlights a strategic response to Nigeria’s evolving economic realities, where access to foreign currency, digital income streams, and global markets has become increasingly critical.
Nigeria has continued to face foreign exchange pressures, prompting policymakers and businesses alike to seek alternative sources of dollar inflows. Freelancers, online merchants, content creators, and export-oriented small businesses have emerged as an important, if often underappreciated, source of foreign earnings. By simplifying how global earnings are converted into local spending power, the Paga–PayPal partnership strengthens the infrastructure supporting this segment of the economy. Nigerian users can now access PayPal-supported cross-border payments through Paga, use funds to pay bills, transfer money to local bank accounts, or spend via cards within the domestic financial system. For many digital workers, this removes friction that previously slowed access to income, tied up working capital, or forced reliance on informal channels.
The collaboration is particularly significant for small and medium-sized enterprises (SMEs), which account for a large share of Nigeria’s employment but often struggle to scale internationally. Through PayPal’s global network of more than 400 million users, Nigerian merchants can now more easily sell goods and services abroad while settling earnings locally via Paga.
This, the companies assert, could help lower the barriers to entry for Nigerian businesses seeking to participate in global e-commerce, digital services, and remote work opportunities. In an environment where domestic demand is constrained, access to international customers offers a crucial growth lever.
Nigeria’s payments market has expanded rapidly, with transaction values reaching N657.8 trillion in 2023 and over 30 million active mobile wallet users, according to industry data. Fintech firms like Paga have been central to this growth, building digital wallets, APIs, and local settlement networks that increasingly rival traditional banking infrastructure.
With more than 21 million users, Paga provides PayPal with a trusted local distribution channel, regulatory familiarity, and integration into Nigeria’s everyday payment flows. For PayPal, partnering with an established local fintech reduces operational complexity while expanding its footprint in one of Africa’s most dynamic digital markets.
The partnership also carries implications for financial inclusion. Digital wallets have become a key entry point into the formal financial system for millions of Nigerians. By enabling global earnings to flow directly into local wallets, the integration encourages greater participation in formal payments and reduces dependence on cash-based or informal channels.
Executives at both companies see the collaboration as part of a wider effort to strengthen Nigeria’s digital financial ecosystem. Tayo Oviosu, Paga’s founder and group chief executive, described the integration as a way to help Nigerians earn, spend, and grow, using global platforms that are adapted to local realities. PayPal’s regional leadership has similarly emphasised support for local innovation and confidence in the digital economy.
