Paga Makes Strategic Shift to Payments Infrastructure

Paga Group, a leading Nigerian fintech, is expanding its focus beyond direct consumer payments to include providing underlying infrastructure services through Paga Engine. This shift mirrors a broader trend in the industry where companies like Stripe have found success by offering financial tools to businesses rather than just end-users.

The Infrastructure Opportunity

As digital payment adoption grows rapidly across Africa, particularly in Nigeria where transaction volumes reached $774.9 billion in 2024 and $206.4 billion in Q1 2025 alone, more businesses are seeking ways to embed financial capabilities without the expense of building systems from scratch.

Paga Engine offers a comprehensive solution that includes payment gateways, wallet infrastructure, transfers, embedded payments, and agent distribution—all managed through a single platform.

Why Infrastructure Matters

Building a compliant payment system requires significant investment in licensing (up to $72,422 initially in Nigeria), technology development ($150,000-$250,000 or more), and ongoing operational support. For businesses focused on logistics, retail, or other industries outside of financial services, this can be a costly diversion from their core competencies.

“That money can be better invested in the businesses’ core services,” notes Ramon Bello, general manager of Paga Engine.

The infrastructure business processed $12 billion in transaction value in 2025 across roughly 100 million transactions, generating potential revenue of $12-$36 million through modest take rates on payment flows.

Competitive Landscape

Paga faces competition from established players like Flutterwave (which has processed $40 billion since 2016) and Paystack, as well as newer infrastructure providers. However, Paga distinguishes itself by offering operational support—including compliance assistance, fraud monitoring, and transaction visibility—that goes beyond basic API integrations.

Currently supporting over 200 businesses including Meta and Amazon, Paga Engine aims to be the backbone for digital commerce across Africa.