PayPal’s Africa pivot hits Nigeria: $100m bet on growth, but old wounds run deep

PayPal is doubling down on its African expansion with a high-profile partnership that has thrust Nigeria back into the spotlight.

Announced on January 27, 2026, the tie-up with local fintech leader Paga enables Nigerians to link PayPal accounts to Paga wallets, receive payments from over 200 countries, settle in Naira (or hold in dollars), withdraw instantly, pay bills, and spend via Paga’s Visa ecosystem.

This integration forms a key piece of PayPal’s “PayPal World” strategy, which prioritizes bridging global access to existing local digital wallets rather than forcing direct adoption. It builds on PayPal’s September 2025 commitment of $100 million to fuel digital commerce across the Middle East and Africa (MEA) through investments, acquisitions, and partnerships.

The fund has already backed players like Tabby (Saudi Arabia), Paymob (Egypt), and Stitch (South Africa), signaling a serious, long-term wager on the region’s explosive growth, where fintech is advancing at double the global pace, per McKinsey.

PayPal’s core markets are maturing: 2024 revenue reached $31.8 billion (up ~seven percent in recent quarters), with trailing twelve-month figures through Q3 2025 around $32.9 billion and net income stabilizing near $4 billion annually.

Read also: PayPal goes live in Nigeria to boost international naira payment

Growth has slowed amid competition, making high-potential regions like Africa essential for sustained momentum.

Nigeria stands out with its massive digital economy of N1.07 quadrillion ($754 billion) in domestic payments volume in 2024, surging from N600 trillion in 2023, and already N285 trillion in Q1 2025, plus over 430 fintech firms.

Local innovators like Paystack (Stripe-acquired), Flutterwave, and Paga have scaled impressively in PayPal’s absence, with Paga alone handling N17 trillion across 169 million transactions in 2025.

Paga CEO Tayo Oviosu, who first contacted PayPal in August 2013, hailed the launch as a breakthrough for accessibility: “This partnership makes global earnings more accessible to Nigerians who are freelancers and online businesses. Consumers can now receive, use, and manage international funds seamlessly within the local economy.”

PayPal’s Otto Williams, SVP and regional head for MEA, emphasized localization: “We have been working with local innovators to develop solutions tailored to Nigeria’s market.”

The pivot, however, collides with two decades of resentment. PayPal restricted inbound payments to Nigeria around 2004 over fraud and chargeback risks, tied to stolen cards via local IPs and early verification gaps.

What began as temporary became a 22-year barrier, limiting users to outbound sends while blocking reliable receipts or withdrawals.

Earlier efforts (2014 First Bank outbound-only link, 2021 Flutterwave business focus) offered partial fixes but deepened distrust.

Public reactions reveal a stark split. Ugobuugo Whyte tweeted stating, “PayPal hurt me so bad. I will never have anything to ever do with them or any company associated with them. So yeah! PAGA I’m done with you guys too!!!”

Joseph Okoegwale called for consequences: “With the atrocities committed by Paypal against Nigerians, a boycott of @paga will be in order… Choose their competitors when you have a choice.”

Meanwhile, a social media user, melody Ogonna, defended Paga’s business decision, stating, “I don’t really understand people cussing Paga, they’re a business… The fact that you don’t want to use Paypal does not mean they shouldn’t take an opportunity that will grow their business.”

Benjamin Anyanwu argued practicality, stating, “For those shouting ‘boycott PayPal’ up and down, PayPal no send your papa. It is a deal between Paga and PayPal… Boycot from now till eternity, na PAGA and Nigerian freelancers go still suffer.”

Critics often credit PayPal’s absence for spurring local resilience, with one noting it gave confidence to founders like those behind Paystack.

Boycott calls trend amid stories of lost gigs, frozen funds, and forced alternatives like Payoneer.

PayPal’s $100 million bet and Paga integration aim to capture remittances, e-commerce, and gig flows in a youthful, mobile-first market. Success depends on strong fraud protections, transparency, and real value to mend trust.

For many, Nigeria’s ecosystem has flourished independently; PayPal must now demonstrate it can enhance, rather than exploit that progress.

This Africa pivot is a calculated high-stakes play on growth, but the scars of exclusion run deep. In Nigeria’s vibrant digital landscape, trust isn’t bought, it is rebuilt.

Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.

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