PayPal, a global payments company, is committing $100 million to expand its operations across the Middle East and Africa (MENA), channeling funds through PayPal Ventures, its venture arm, including minority investments, potential acquisitions, and local hiring.
This move comes at a sensitive time. In August 2025, German banks abruptly blocked over €10 billion in PayPal-related payments amid security concerns, citing a failure in its fraud system. PayPal says the disruption is resolved and is working with banking partners to reconcile accounts.
Also, it builds on the company’s April launch of a regional hub in Dubai, which it describes as a gateway to around 80 countries across Africa and the Middle East. PayPal says it will expand headcount and operations, with a focus on payments, compliance, and engineering roles.
The firm is not new to the region. PayPal Ventures has backed fintech companies such as Tabby and Paymob, giving it both market intelligence and early distribution channels. The new commitment is designed to turn those bets into broader adoption of PayPal’s services.
In the short term, merchants should expect more integrations and easier cross-border checkouts. Over time, PayPal may pursue acquisitions or follow-on investments to build local payment rails and settlement flows.
Click to viewMeanwhile, PayPal is pushing to lighten credit exposure in the U.S., signing a multi-year deal with Blue Owl Capital to offload around $7 billion in Buy-Now-Pay-Later (BNPL) “Pay in 4” receivables over two years. It retains responsibility for underwriting and servicing.
On top of these moves, PayPal is investing in a structural tech overhaul. It launched a $300 million transformation plan to modernize infrastructure and reduce costs, ahead of workforce reductions and platform consolidation through 2027.
For now, Africa and MENA markets remain fragmented, with regulatory hurdles, currency controls, and uneven infrastructure. Similarly, local fintechs are moving quickly with tailored products and lower costs.
