PayPal has announced plans to expand its footprint in Africa through the launch of a new cross-border digital wallet platform, slated for 2026.
Integration into PayPal World
The initiative is part of PayPal’s global payments system called PayPal World, which aims to enable seamless interoperability between local digital wallets and international merchants. The company is currently engaged in discussions with various African fintech firms as it looks to tap into this market.
PayPal World will facilitate cross-border payments and international purchases through existing local digital wallets without requiring users to create a PayPal account. Transactions will be processed via a PayPal checkout button that connects directly to local wallet providers.
Growth Opportunities in Africa
Africa presents a substantial long-term growth opportunity for global payment solutions. According to the World Bank, financial account ownership in Sub-Saharan Africa grew from 34% in 2014 to 58% by 2024. Mobile money accounts have surpassed two billion globally, with Africa accounting for over 70% of total mobile money transaction value, as reported by GSMA data.
Enhanced Interoperability
PayPal’s current partnerships in Africa, such as those with M-Pesa and Flutterwave, primarily focus on local payments and online transactions. The new platform expands this scope to include overseas payments and wallet-to-wallet interoperability, allowing international merchants to accept local wallet payments without additional hardware investments like POS terminals.
This approach addresses ongoing challenges in African cross-border commerce, including limited card penetration and fragmented payment infrastructure.
Global Wallet Partners
Global wallet partners confirmed for PayPal World include India’s UPI, China’s WeChat Pay, and Brazil’s Mercado Pago. These collectively represent approximately two billion users. Integrating African wallets into this network will provide local users access to a vast international merchant base while enabling global sellers to reach African consumers seamlessly.
Investment Commitments
In addition to platform development, PayPal has pledged USD 100 million toward investment and innovation initiatives across the Middle East and Africa. This funding includes venture investments and operational expansion plans aimed at increasing local hiring to support regional growth.
