Global payments giant PayPal has partnered with Nigerian fintech company Paga to enable direct withdrawals to local bank accounts, ending a decades-long restriction on the Nigerian market. The partnership, announced on January 27, 2026, represents PayPal's first significant push to fully serve Africa's largest economy.

Through the integration, Nigerian PayPal users can now withdraw funds directly to their local bank accounts via Paga's payment infrastructure. Previously, Nigerian customers could only send money through PayPal but were unable to receive or withdraw funds locally, severely limiting the platform's utility for freelancers, small businesses, and e-commerce merchants.

Market Impact and Context

Nigeria, with Africa's largest population and a rapidly growing digital economy, has long been a strategic gap in PayPal's global coverage. The country's burgeoning freelance and digital services sector has been hampered by limited access to international payment systems, often relying on alternative solutions or intermediary services to receive payments from global clients.

Paga, established as one of Nigeria's leading digital payment platforms, processes transactions for over 20 million customers. The company's extensive network and compliance infrastructure made it an attractive partner for PayPal's market expansion strategy.

Regulatory Compliance

The partnership comes amid increased scrutiny of cross-border payments in Nigeria, with the Central Bank of Nigeria implementing stricter regulations on international money transfers. Both companies have confirmed the service meets all local regulatory requirements, including anti-money laundering and know-your-customer protocols.