Payaza, a Nigerian financial technology company, has secured a Payment Service Provider license from the Bank of Uganda, enabling it to operate legally in the country and expand its East African footprint. The license was granted in February 2026, according to company statements.
Company Background and Strategy
Payaza, founded in Nigeria, operates a digital payment platform that allows businesses and individuals to send and receive money, pay bills, and make merchant payments. The company has been expanding its licensed operations across Africa. Prior to the Uganda license, Payaza held similar authorizations in Nigeria and Rwanda. The firm stated that its expansion into Uganda is a strategic move to deepen its presence in the East African Community, a regional economic bloc.
Uganda's Market Context
Uganda, with a population of approximately 48 million, has a significant mobile money ecosystem, though formal banking penetration remains lower. The Bank of Uganda, the central bank and primary financial regulator, has been active in licensing and supervising digital financial services. The country is a member of the East African Community, which is working on harmonizing digital payment systems to facilitate cross-border trade under the African Continental Free Trade Area (AfCFTA) framework.
Industry Landscape and Trends
Payaza's entry into Uganda occurs within a broader context of Nigerian fintech firms seeking growth in other African markets. The move aligns with industry trends where companies are securing necessary regulatory approvals to offer cross-border business payment solutions, aiming to serve the growing demand for digital transaction services among small and medium-sized enterprises. The expansion of fintech services is often linked to efforts to improve financial inclusion and support intra-African trade.
Separate Market Activity
In a separate development within the African fintech sector, Moniepoint, another Nigerian fintech company, has been reported to be growing its share of the business payments market in Africa. Moniepoint, which started as an agency banking network before expanding into business payments and credit, has reportedly processed significant transaction volumes. Industry analysts note that the business-to-business payments segment is becoming increasingly competitive as digital adoption rises.
Regulatory Considerations
The licensing of Payaza by the Bank of Uganda follows a pattern of African regulators requiring formal authorization for digital payment services. Operating with a license allows fintech companies to integrate more deeply with local banking systems and mobile money operators, which is critical for scaling services. Regulatory compliance is seen as a key factor for sustainable growth in Africa's fintech sector.