Payaza, a digital payment platform, has secured a Payment Services Operator (PSO) license from the Bank of Uganda, the country's central bank, the company announced on 11 February 2026. The license authorises Payaza to operate as a regulated digital payment service provider in the East African nation.

Expanding Services in Uganda

The PSO license allows Payaza to legally offer services including merchant payments, bulk disbursements, and collections within Uganda. The company stated that the license is a prerequisite for its planned expansion into seamless cross-border payments, aiming to connect Uganda to its existing network across West and Central Africa.

Payaza, founded in 2018, operates a payment gateway and digital wallet service. The company has established a presence in Nigeria, Ghana, and Cameroon, facilitating transactions for businesses and individuals. Uganda, with a population of approximately 48 million, represents a significant market for digital financial services, driven by high mobile phone penetration and the widespread adoption of mobile money.

Regulatory Landscape and Market Context

The Bank of Uganda has actively regulated the digital payments sector, requiring operators to obtain licenses such as the PSO to ensure consumer protection and financial system stability. Uganda's mobile money market is one of the most active in Africa, with services like MTN Mobile Money and Airtel Money serving millions of users.

The license acquisition aligns with a regional trend of fintechs seeking formal regulatory approval to scale operations and build trust. It also supports the broader African Continental Free Trade Area (AfCFTA) agenda by potentially lowering transaction costs and improving the efficiency of cross-border trade payments.

Separate Industry Development: Onafriq and Stablecoins

In a separate development also announced on 11 February 2026, the digital payments network Onafriq partnered with infrastructure platform Conduit to integrate stablecoins for cross-border transactions in Africa. Onafriq, formerly known as MFS Africa, connects over 500 million mobile money wallets across the continent. Conduit provides the technical infrastructure to convert between fiat currency, stablecoins, and central bank digital currencies.

The partnership will initially focus on corridors between Africa, the UK, and the European Union, using stablecoins pegged to major fiat currencies to facilitate faster and cheaper transfers. This move reflects a growing industry exploration of blockchain-based solutions to address the long-standing challenges of high cost and slow speed in African cross-border payments.

While both announcements concern the cross-border payments landscape, they represent distinct strategic approaches: Payaza's regulatory compliance for traditional digital payment expansion, and Onafriq's pilot of emerging digital asset technology.