PayPal is in talks with African financial technology companies to launch a cross-border digital payments platform. The goal is to integrate its services across the continent by 2026, according to industry reports. However, this plan has faced strong criticism and doubt from users in major markets like Nigeria. They point to years of restrictive policies that hindered economic opportunities for freelancers and small businesses.
The new service, called PayPal World, aims to enable users to connect global and local digital wallets. With this system, users could make international payments or shop on foreign websites using a PayPal interface linked to their existing local mobile money or bank accounts. This would not require a standard PayPal account.
Reactions on social media and in tech forums in Nigeria, one of Africa’s largest digital economies, have been sharp. Many users feel that PayPal’ return is too late, as its prior limitations pushed them toward local alternatives. Some connected PayPal’s renewed interest to new Nigerian tax rules targeting digital transactions, suggesting the company is now looking for a stable revenue source it previously avoided.
paypal trying to waltz back into nigeria is very insulting ngl.
— oziọma (@rsvptemple) December 17, 2025
and, this is quite personal.
Background
The backlash stems from a history of access limitations. In the mid-2000s, PayPal placed strict restrictions on users in several sub-Saharan African countries, including Nigeria, Ghana, Ivory Coast, Sierra Leone, Liberia and Zimbabwe. At that time, the company said these policies were due to problems with fraud prevention and cited insufficient local banking regulations and national identification systems.
For over a decade, these restrictions mostly limited users in affected countries to sending payments only, while preventing or severely limiting the ability to withdraw funds to local bank accounts. While the company sometimes described these limits as temporary, they persisted for years. Limited functions for receiving payments were introduced in some regions around 2014 and 2015, but comprehensive merchant services, which are vital for freelancers and businesses receiving payments from abroad, remained unavailable for most users.
This resulted in an uneven financial relationship. For years, users could often send money out of their countries to buy goods, but they were strictly prohibited from receiving payments or withdrawing funds to local bank accounts. This policy effectively locked millions of African entrepreneurs, artists, and remote workers out of the global digital economy. Many professionals reported losing potential income from international freelance work, remote jobs, and e-commerce because global platforms only offered PayPal as a payment option.
PayPal is hostile to African users.
— Brian (@BreakTheKnown) December 16, 2025
Funds frozen. Accounts locked.
No transparency. No recourse.
Too many Africans have lost money for this to be coincidence.
In PayPal’s absence, a dynamic local fintech sector thrived. Nigeria, in particular, emerged as a global hub for financial innovation. Companies like Flutterwave and Paystack, which was acquired by Stripe for $200 million, created solutions specifically suited to the African market.
These local firms built the infrastructure that PayPal declined to provide. They developed partnerships with local banks, adjusted for fluctuating currency values and gained the trust of a user base that felt neglected by Western companies. Today, Nigeria’s fintech startups process billions of dollars in transactions each year, serving a tech-savvy and self-sufficient population.
This local innovation changed the market landscape significantly. Nigeria’s fintech sector has seen explosive growth, driven by startups tackling specific regional issues like identity verification, currency changes and mobile-focused users. Similar fintech booms have occurred in Ghana and Zimbabwe, leading to a network of solutions tailored to local needs. As a result, analysts note that PayPal World would not be introducing a new concept to an undeveloped market. Instead, it would be entering a complex and competitive ecosystem with established players that have already earned user trust and built extensive local networks.
Public reaction
Public response has been notably negative. On social media and in tech forums, many Nigerians have raised concerns about the timing of the expansion, which coincides with government efforts to implement comprehensive tax reforms.
A common sentiment in online discussions is that PayPal is only now interested in Africa because the “risk” has been reduced by others. Users have shared experiences of losing international contracts because they could not provide a PayPal address, a barrier that altered their career paths. For these individuals, the promise of a “PayPal button” in 2026 feels like a late and insincere attempt.
The proposed platform could still fill a specific need by making some cross-border transactions easier, possibly streamlining international trade and remittances. Its backend architecture may attract larger African businesses looking for smooth global integration.
However, for individual users and small business owners, adoption may be slow. Interviews with several Nigerian freelancers and online entrepreneurs showed a strong preference for sticking with their current fintech solutions, which they find more responsive and better integrated with local financial systems. Many view the potential PayPal service as a secondary option at best.
Despite this, PayPal’s negotiations show a recognition of Africa’s rapid digital transformation and the significant volume of its cross-border trade. The continent’s digital payment market is expected to keep growing in the coming years, driven by a young, tech-savvy population and more internet access.
This development also points to a shifting power dynamic. The rise of local fintech firms means global giants can no longer set the rules without considering existing frameworks; they must now compete based on service quality. This competition could ultimately benefit consumers through improved services and new ideas.
PayPal has not issued an official statement about the specific timeline or partners for its African expansion. Company representatives have previously highlighted a global strategy of working with local platforms to promote financial inclusion.