Nigerian fintech Payaza has secured a Payment Systems Operator (PSO) license from the Bank of Uganda, the company announced on February 11, 2026. The license permits Payaza to establish a legal entity in Uganda and process both domestic and cross-border payments, marking a significant step in its East African expansion strategy.

Expanding East African Footprint

The PSO license enables Payaza, which was founded in Nigeria in 2020, to operate legally within Uganda's formal financial system. The company, which provides a platform for businesses to accept and make payments across multiple channels, will now be able to facilitate transactions between Uganda and other African nations. Uganda has a population of approximately 48 million and is a significant mobile money market, with services like MTN's MoMo and Airtel Money widely used. The Bank of Uganda is the primary regulator for the country's payment systems.

"This license is a major milestone for Payaza and a testament to our commitment to driving financial inclusion and seamless cross-border payments in Africa," Payaza CEO Olamide Afolabi said in a statement carried by TechAfrica News. The move is part of a broader trend of African fintechs expanding regionally to capture market share in the continent's growing digital payments sector, which is being driven by increasing smartphone penetration and a push for greater financial inclusion.

Context of Regional Integration

Payaza's Ugandan license aligns with the broader push for easier cross-border trade and payments within Africa, a key objective of the African Continental Free Trade Area (AfCFTA). Reducing the cost and friction of moving money across borders is seen as critical for boosting intra-African commerce. Many fintechs are positioning themselves to capitalize on this by building multi-country payment networks.

In a separate development also announced on February 11, 2026, pan-African payments network Onafriq partnered with digital asset infrastructure firm Conduit to facilitate stablecoin payments across the continent. This partnership, reported by Technext and The Kenyan Wallstreet, will allow users to send and receive USDC stablecoins through Onafriq's network, which connects over 500 million mobile money wallets and bank accounts across 40 African countries. Onafriq, formerly known as MFS Africa, was founded in 2009 and is one of the continent's largest digital payments hubs. Conduit provides infrastructure for converting between traditional currency and stablecoins.

Regulatory Landscape and Growth

The licensing of Payaza by the Bank of Uganda reflects a continuing trend of African regulators formalizing their oversight of digital payments to ensure stability, consumer protection, and anti-money laundering compliance. Obtaining such licenses is often a prerequisite for fintechs to scale their operations and integrate with national financial infrastructures.

The African fintech sector has seen significant growth and investment over the past decade, with payments and remittances being a primary focus. Companies are increasingly building interconnected systems to address the longstanding challenges of high cost and low speed in cross-border transfers on the continent. Payaza's entry into the Ugandan market with a PSO license places it among the regulated players competing to facilitate these flows within East Africa and beyond.