Paga, a Nigerian fintech startup, has marked a significant milestone by processing $5.6 billion (₦8.7 trillion) in transactions through its ecosystem in 2024, with an average monthly transaction volume of $653 million (₦1 trillion). This achievement is a testament to the company's growth and evolution since its inception in 2009.

Founded by Tayo Oviosu, Paga started as an agency banking platform but has since expanded into a comprehensive ecosystem comprising three businesses: Paga Engine, a digital infrastructure platform for financial institutions; Paga, a consumer-focused fintech similar to Cash App; and Doroki, a retail management platform designed to serve small and medium-sized businesses. According to Oviosu, Paga Engine is the driving force behind the company's transaction volume, with over 200 businesses relying on its infrastructure.

Oviosu attributes Paga's success to its decision to open up its infrastructure to third-party businesses, enabling them to build on its platform. This approach has allowed Paga to reduce external interference, increase its margins, and provide a smoother payment experience for customers. The company's ecosystem has also helped it to mitigate the impact of regulatory disruptions, such as the ban on onboarding new customers imposed by Nigerian regulators in April 2024.

Paga's consumer business, which targets the mid-to-upper-end market, has seen significant growth, with a 200% increase in active users and revenue year-over-year. The company is positioning itself alongside neobanks like Sparkle, focusing on more affluent users rather than competing for the mass market dominated by OPay, PalmPay, and Moniepoint.

In terms of security, Paga has revamped its know-your-customer (KYC) process, utilizing Nigeria's national identity number (NIN) and bank verification number (BVN), as well as face match technology from Smile ID. The company also verifies BVN and blacklists bad actors using an industry-wide fraud list, resulting in a significant reduction in fraud.

Looking ahead, Paga plans to expand its consumer business into another African market in Q2 2025 and is raising capital to drive growth. Oviosu emphasized the importance of disciplined growth, stating that the company is cautious about growing at all costs. While an acquisition is still a possibility, Oviosu believes that a strategic acquisition aligns better with Paga's long-term strategy and reduces short-term public scrutiny.

As Paga continues to grow and expand its ecosystem, its success serves as a testament to the potential of fintech innovation in Africa. With its sights set on new markets and continued growth, Paga is poised to play a significant role in shaping the future of digital payments and financial services on the continent.