African Fintech Evolution: Paga Launches US Banking Services, Signals New Era in Remittance Industry
In a groundbreaking move that signals the transformation of Africa’s remittance sector, Paga has become the first African fintech to offer comprehensive U.S. banking services to African immigrants, marking a significant shift from traditional remittance-only business models.
The company’s recent launch of its U.S. subsidiary, in partnership with Oklahoma’s Regent Bank, enables African immigrants with U.S. addresses to access FDIC-insured checking accounts directly through the Paga platform. This development comes as the traditional standalone remittance model faces declining profitability, with FX transfer margins dropping by approximately 30% over the past six years.
The African remittance market, valued at approximately $95 billion in 2023 (with Nigeria alone receiving $21 billion in 2024), is witnessing a strategic pivot as companies seek to diversify their services. Paga’s expansion targets a market of over 4.5 million African immigrants in the United States who often struggle with traditional banking services.
Through its new platform, customers can access:
– U.S. checking accounts with full routing capabilities
– Physical and virtual Visa cards compatible with Apple Pay and Google Pay
– ACH and wire transfer capabilities
– Cross-border money transfer services to African countries
CEO Tayo Oviosu emphasizes that this U.S. expansion represents the first step toward offering multi-currency capabilities, with plans to eventually include British pound and Euro balances within the same application.
The company’s strategy extends beyond consumer banking through two key business solutions:
– Paga Engine: A B2B product providing banking infrastructure
– Doroki: An SME retail platform enabling international payment acceptance
Drawing parallels with Revolut’s successful super-app model, which generated $4 billion in revenue in 2025, Paga’s approach differs in key aspects. While both companies leverage cross-border payments as an entry point, Paga’s strategy is specifically tailored to serve the African diaspora market through partnerships with established banks and a strong focus on business solutions.
The future of Paga’s expansion may include:
– Secured credit cards and credit-builder loans for immigrants
– USD savings accounts with competitive interest rates
– Enhanced business banking services through Paga Engine and Doroki
– Additional currency options and markets
This evolution in the African fintech space suggests that success in the remittance market now requires a comprehensive financial services approach, moving beyond simple money transfers to become integrated financial partners for both individuals and businesses.
