Paga Group, a prominent African financial technology company, has expanded to the United States in a bid to capture a share of the lucrative and rapidly growing African diaspora market. The company is initially targeting the more than 3 million-strong Nigerian-American community, offering them U.S. bank accounts in an effort to tap into the estimated $21 billion in remittances that will be sent home this year.
This expansion pits Paga against a growing field of fintechs competing for the diaspora finance market. However, the UK-based company is betting on a “banking-first” strategy, aiming to provide a comprehensive financial solution rather than just a money transfer service. The new platform, created in partnership with a U.S.-regulated bank, will allow users to open an FDIC-insured U.S. bank account with a valid ID and U.S. address.
The accounts come with both physical and virtual Visa debit cards, which can be integrated with payment platforms like Apple Pay and Google Pay. Paga is also offering seamless integration with financial apps such as Robinhood and Venmo, signalling its ambition to be a central financial hub for its users. This will enable customers to not only send money to Nigerian and U.S. bank accounts but also to save, spend, and invest in dollars.
The move is a clear indication of Paga’s intent to position itself as a key player in the global financial landscape for the African diaspora. The company has stated that its mission is to simplify access to and use of money for a billion people and to build Africa’s future financial infrastructure. By providing a single wallet for those living across two continents, Paga is aiming to empower Africans to participate more freely in global commerce. This expansion into the U.S. is a significant step towards that goal, and the industry will be watching closely to see if Paga’s comprehensive banking approach will be enough to win over the hearts and wallets of the African diaspora.
