PayPal Holdings Inc. is testing its Africa strategy with a $100 million fund aimed at investments, partnerships, and acquisitions in fintech startups, selecting Nigeria as the first market for the initiative. The move comes as the company’s shares have fallen roughly 75% over the past five years, Reuters reported, increasing pressure on the payments giant to find growth in emerging markets.
Under the plan, PayPal has partnered with Nigerian fintech Paga to allow users to link PayPal accounts to local wallets, receive international payments, settle funds in naira, and access the company’s global network of more than 400 million users. Previously, Nigerian customers were limited to outbound payments only, business insider Africa.
The strategy reflects PayPal’s broader “PayPal World” approach, which focuses on collaborating with local digital finance platforms rather than establishing standalone operations. Analysts cited by Reuters said this model leverages existing infrastructure and regulatory compliance while scaling cross-border payment capabilities, positioning Nigeria as a gateway for growth across Africa and the Middle East.
Industry observers noted that Nigeria’s fast-growing fintech ecosystem, strong mobile money adoption, and vibrant digital economy present opportunities but also intense competition. PayPal’s success will hinge on execution, local partnerships, and rebuilding trust among users after years of restricted access.
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