What is Paga?
Paga is a mobile payments and mobile wallet platform founded in Nigeria by Tayo Oviosu. Launched publicly in 2011, it enables users to send and receive money, pay bills, buy airtime, and access basic banking services via a mobile app, website, or through a nationwide network of agent outlets.
How Paga works
- Users access Paga through a smartphone app or the company website. Non-account holders can also transact via Paga agents.
- Accounts can be funded by depositing cash with an agent, transferring from a bank, or using a debit card online.
- To send money, a sender provides the recipient’s phone number; the agent or app processes the transaction and debits the sender’s account.
- Both sender and recipient receive SMS confirmations. The sender’s SMS includes a withdrawal code the recipient can use at an agent outlet or partner bank to collect cash.
- Paga also partners with international money transfer services so incoming transfers can be deposited into Paga accounts.
Services
- Peer-to-peer money transfers
- Deposits and savings
- Airtime/top-up purchases
- Utility and cable bill payments
- Merchant payments and point-of-sale acceptance
- Checkout integration for businesses and e-commerce sites
- Agent network that functions as human ATMs for cash-in/cash-out
Security and account requirements
- Transactions must be authorized with a personal PIN.
- Additional security (such as answering verification questions) is required when logging in from unrecognized devices.
- Users are grouped into tiered levels with progressively higher transaction limits and verification requirements:
- Level I: basic registration with name and phone number; limited daily transfer amount.
- Level II: adds address and ID details; higher daily limit.
- Level III: requires references and credit checks in addition to Level II information; highest daily limit.
- These controls help reduce fraud and comply with regulatory and anti-money-laundering standards.
Role in financial inclusion
Paga is part of a broader fintech movement extending financial services to the unbanked and underbanked by leveraging widespread mobile-phone access. Its agent network and low-cost digital services make basic financial transactions accessible in areas with limited brick-and-mortar banking infrastructure.
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Other mobile money platforms
Similar mobile-money solutions used in emerging markets include:
– M-Pesa
– MTN Mobile Money
– Airtel Money
– Orange Money
Key takeaways
- Paga is a Nigerian mobile wallet and payments platform offering transfers, bill payments, savings, and merchant services.
- It operates via app, web, and a broad agent network that enables cash-in/cash-out across the country.
- Tiered verification and PIN-based authentication balance ease of use with fraud prevention and regulatory compliance.
- Platforms like Paga play a significant role in expanding financial access for unbanked and underbanked populations.