Nigeria has been one of Africa's standouts in digital payments, attracting for VC and fintech startups. The Lagos based startup Paga has acquired Apposit - a software development company in Ethiopia, for an undisclosed amount. The mobile payment company also plans its Mexico launch in 2020,
The two companies have come pretty far. Apposit has grown its business into a team of 63 engineers and technicians and has racked up a list of client partnerships. The company helped digitize the Ethiopian Commodities Exchange and has contracted on IT and software solutions with banks non-profits and brick and mortar companies. For a decade, Apposit has also supported Paga’s payment product development. The story behind the acquisition process is a story threaded with development of event by chance in a beneficial way.
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Paga has created a multi-channel network to transfer money, pay bills, and buy things digitally. The company has 14 million customers in Nigeria who can transfer funds from one of Paga’s 24,411 agents or through the startup’s mobile apps. Paga products work on iOS, Android, and basic USSD phones using a star, hashtag option. The company has remittance partnerships with the likes of Western Union and allows for third-party integration of its app.
With its Apposit acquisition and plans for continued expansion, PayPal may become more than a model for Paga. Also, big fintech players, such as PayPal and Alipay, could be future competitors considering Paga’s planned expansion into more emerging markets.
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