PayPal has officially returned to Nigeria, nearly 20 years after restrictions limited inbound transactions, through a partnership with local fintech Paga. This integration allows Nigerians to receive international payments, access global merchants, and convert funds into naira directly, bridging a long-standing gap in cross-border financial access.
Under the arrangement, Nigerian users can link their PayPal accounts to Paga wallets, enabling them to receive funds from over 200 countries, withdraw them in naira, or hold balances in U.S. dollars. Previously, Nigerians could only send payments abroad through PayPal but could not receive them directly, forcing reliance on informal alternatives.
How the Integration Works
The partnership leverages Paga’s wallet infrastructure, which already serves millions of users and merchants nationwide. Once connected, users can:
- Withdraw funds in naira for daily expenses,
- Shop with PayPal’s global merchant network,
- Transfer money to local bank accounts,
- Pay bills or use integrated card solutions.
For SMEs, the integration opens access to PayPal’s vast network of over 400 million users worldwide. Merchants can receive international sales directly and settle funds locally, simplifying operations and expanding reach.
PayPal emphasized that the service was designed to be secure, compliant, and aligned with local market realities. Executives noted that working with trusted local partners like Paga was essential to effectively serve the Nigerian market.
Its Significance for Nigeria’s Digital Economy
The return of PayPal addresses a long-standing need for reliable, legal channels for receiving international payments. Freelancers, online workers, and small exporters who previously depended on workarounds can now access funds formally.
It also reflects growing confidence in Nigeria’s digital payments ecosystem, which has expanded rapidly in recent years. Large numbers of mobile wallet users and API-driven payment platforms have positioned Nigeria as a key market for cross-border fintech innovation. Analysts suggest that this integration could bring significant dollar inflows into the formal financial system, supporting liquidity and creating new revenue opportunities for businesses and individuals.
Users can activate the service by linking their PayPal accounts to Paga wallets, enabling immediate access to international payments. The partnership also sets the stage for future enhancements, including broader merchant acceptance and deeper integration with local financial infrastructure.
PayPal’s reentry into Nigeria demonstrates a renewed focus on African markets, anchoring global payments in compliant, locally adapted systems and opening new avenues for economic participation.
