Nigeria’s largest mobile money service, Paga, reached a new milestone on Wednesday when its users hit 5 million. The highest among any of the 21 Nigeria mobile money services.

The mobile money service provider is the single largest network of financial access points in Nigeria with over 10,000 agents and reportedly processed US$1 billion between January 2012 and June 2015.

In the last 12 months, Paga has processed over US$800 million by doing mainly money transfers, unlike early days when bill payments form the bulk of its primary transaction set.

Last month, the mobile giant reached 900,000 active users and estimated to hit 1 million active users by the end of the fourth quarter of 2016.

“There are not many financial institutions in Nigeria who have 1 million active users,” said Tayo Oviosu, the Chief Executive Officer and Founder of Paga.

This includes First Bank’s First Monie that has about two million subscribers and eTranzact’s Pocket Moni.

In July, PayPal lauded Nigeria as its third largest mobile shopper worldwide and estimated that about $819 million will be processed this year, more than $610 million recorded last year.

This, PayPal attributed to Nigerian growing online shoppers and the realization of how easy it is to shop across the globe via mobile devices.

According to Tayo Oviosu, this is key to Paga’s future growth.

“The ability to send money P2P and to pay businesses (online and offline) will be the major driver of our growth in this phase of our history,” Oviosu wrote in a Medium post.

Presently, Paga is the fastest growing mobile money service in Africa and one of the fastest in the world. While P-Mesa remains the largest mobile money service in Africa, the size of Nigerian market (180 million population) gave Paga the edge going forward.

One of the reasons, the company has gained over 2 million users in the last 14 months and projected by Investors King Ltd to reach 10 million user base by the end of 2018, if it successfully partner local banks by helping them bring their services to the mass market using its over 10,000 agents and simultaneously reaching wider audience through this one-stop concept.

“Our goal, as a full service payments business, is to solve the payment needs for all sizes of merchants (without competing with them), and making it easy for consumers to send money to other people or pay for goods and services,” Oviosu said.

http://investorsking.com/paga-surpasses-paypal-first-bank-as-nigeria-mobile-king/

Nice one. I do use both Mpesa and Airtel Money in Kenya, with the airtelmoney account is basically my airtel line which is linked to an Airtel Visa card.

Pavore9:
Nice one. I do use both Mpesa and Airtel Money in Kenya, with the airtelmoney account is basically my airtel line which is linked to an Airtel Visa card.

That is good, how is their service?

Truth234:


That is good, how is their service?

Very good as many Kenyans even receive their International transfers such as World remit, Western Union, Moneygram, SKrill etc directly into their phone numbers which also service mobile money accounts and go withdraw the money sent from the many Mpesa and Airtel money agents around, cutting out banks from the transactions but if your line is linked to a Visa card you can withdraw the money from any ATM in the world that has a Visa logo, also using to make online payment where Visa is accepted.

For Airtel money, they presently run a cashback promo as when you use your airtelmoney to make payments on Fridays you will be refunded 5% of what was spent that day. For example, if l make payments totalling 50,000 Kenyan shillings ($500) today being Friday, by next Friday Airtelmoney will return 2,500 Kenyan shillings to my account!

Pavore9:


Very good as many Kenyans even receive their International transfers such as World remit, Western Union, Moneygram, SKrill etc directly into their phone numbers which also service mobile money accounts and go withdraw the money sent from the many Mpesa and Airtel money agents around, cutting out banks from the transactions but if your line is linked to a Visa card you can withdraw the money from any ATM in the world that has a Visa logo, also using to make online payment where Visa is accepted.

For Airtel money, they presently run a cashback promo as when you use your airtelmoney to make payments on Fridays you will be refunded 5% of what was spent that day. For example, if l make payments totalling 50,000 Kenyan shillings ($500) today being Friday, by next Friday Airtelmoney will return 2,500 Kenyan shillings to my account!

That is really good, Paga has made adjustment to its model to suit Nigerian market. In Kenya, few people have bank account, while in Nigeria more people do and can access it via smart-phones. Exactly, what Paga and P-Mesa are offering. This is the reason why P-Mesa failed in South Africa.

But Paga has been able to capitalized on Nigerian market and hopefully they will get local banks to embrace their over 10,000 network.

Truth234:


That is really good, Paga has made adjustment to its model to suit Nigerian market. In Kenya, few people have bank account, while in Nigeria more people do and can access it via smart-phones. Exactly, what Paga and P-Mesa are offering. This is the reason why P-Mesa failed in South Africa.

But Paga has been able to capitalized on Nigerian market and hopefully they will get local banks to embrace their over 10,000 network.

Many Kenyans also do have bank accounts but mobile money ease things up. For example my Airtelmoney is linked to my bank account and if l should receive any payment through it be it local or internationally, l will just forward the money to my bank account or any other person's bank account. You just need a simple phone to transact as Nokia 3310 can do these transactions, cutting of the need for Smart-phones.

Pavore9:


Many Kenyans also do have bank accounts but mobile money ease things up. For example my Airtelmoney is linked to my bank account and if l should receive any payment through it be it local or internationally, l will just forward the money to my bank account or any other person's bank account. You just need a simple phone to transact as Nokia 3310 can do these transactions, cutting of the need for Smart-phones.

That many are just 12 % of the population, in a more vibrant economy it won't scale. Hence, the need for modification.

http://www.bbc.com/news/world-africa-36260348

@mods lalasticlala, dominique, Mynd44 please move this to front page, Paga has done well and deserves our collect effort.

Truth234:


That many are just 12 % of the population, in a more vibrant economy it won't scale. Hence, the need for modification.

http://www.bbc.com/news/world-africa-36260348

In the Kenyan context, that is many as it reflects one in every eight Kenyan residents having a bank account putting into consideration that mobile money operations is heading to its tenth year in Kenya. Going by records Kenyans transacted Sh3billion ($30m) through mobile money every day during the second quarter of the 2015-16 financial year.

Read more at: http://www.standardmedia.co.ke/business/article/2000197514/mobile-money-transactions-in-kenya-hit-sh3-billion-a-day

Banks and other credit service providers have keyed into disbursing loans through the mobile money providers based on one's credit ratings with the mobile money providers.

There is no incentive to open a bank account here as an individual. l have one for the sole purpose of presenting a bank statement at the embassy whenever l apply for visas of a third country.

The psychology of the people also play a part.

@Pavore9

I went through your blog, very informative about life in Kenya. I enjoy the topics you cover, keep up the good work. Cheers.

Chromedome:
@Pavore9

I went through your blog, very informative about life in Kenya. I enjoy the topics you cover, keep up the good work. Cheers.

I really need to update that blog as the exchange rate has changed as One Kenyan shillings which used to convert to N2.00 now converts to N4.00! and for Nigerians to be allowed entry on arrival at the Nairobi Airport don become wahala by the day as their immigration love the deportation language.

This is interesting. First time I am hearing of them. How does it work? Like a mobile wallet?

XX01:
This is interesting. First time I am hearing of them. How does it work? Like a mobile wallet?

Similar

Truth234:


That is really good, Paga has made adjustment to its model to suit Nigerian market. In Kenya, few people have bank account, while in Nigeria more people do and can access it via smart-phones. Exactly, what Paga and P-Mesa are offering. This is the reason why P-Mesa failed in South Africa.

But Paga has been able to capitalized on Nigerian market and hopefully they will get local banks to embrace their over 10,000 network.

Last I checked, ther are 14 million people(out of an adult population of 25 million)with bank accounts in Kenya.That does not qualify as 'few'. The difference is that mobile banking is seamlesly intergrated into mainstream banking.
For example.
The Equity Orange Money account is basically a bank account(Equity) running on a mobile platform.(Orange).It does not have the transaction limits of MPESA and you have the choice to deposit or withdraw from either an Equity branch or agent or an Orange agent.Convenience.Plus, you can recieve money via Paypal to that account and withdraw from an orange agent.
You can borrow a loan from Commercial Bank of Africa through MPESA via the Mshwari platform.
You can actually open a KCB bank account via any mobile network.
You can transfer money to and from your MPESA TO YOUR Co-op bank account seamlessly via MCoopcash.
etc etc
Mobile Banking actually accelerated mainstream banking in Kenya as there is ease of movement of money between the two.

GERALD710:

Last I checked, ther are 14 million people(out of an adult population of 25 million)with bank accounts in Kenya.That does not qualify as 'few'. The difference is that mobile banking is seamlesly intergrated into mainstream banking.
For example.
The Equity Orange Money account is basically a bank account(Equity) running on a mobile platform.(Orange).It does not have the transaction limits of MPESA and you have the choice to deposit or withdraw from either an Equity branch or agent or an Orange agent.Convenience.Plus, you can recieve money via Paypal to that account and withdraw from an orange agent.
You can borrow a loan from Commercial Bank of Africa through MPESA via the Mshwari platform.
You can actually open a KCB bank account via any mobile network.
You can transfer money to and from your MPESA TO YOUR Co-op bank account seamlessly via MCoopcash.
etc etc
Mobile Banking actually accelerated mainstream banking in Kenya as there is ease of movement of money between the two.

I didn't want to reply, but you forced me. Here is a question for you, why was mobile money service (M-Pesa) invented in Kenya? The first of it kind to be invented ever, and what was the population of active bank users as at the time? The answer is the reason why P-Mesa scale successfully in East Africa. In Nigeria its a different story, and that was the same reason it failed in South Africa.

Please don't forget that mobile money services partnership/integration with conventional banks is the reason for the current upsurge in financial service access "25.4 million mobile money subscribers". That is why Kenya’s banked population is "NOW" the highest in Africa.

Truth234:


I didn't want to reply, but you forced me. Here is a question for you, why was mobile money service (P-Mesa) invented in Kenya? The first of it kind to be invented ever, and what was the population of active bank users as at the time? The answer is the reason why P-Mesa scale successfully in East Africa. In Nigeria its a different story, and that was the same reason it failed in South Africa.

Please don't forget that mobile money services partnership/integration with conventional banks is the reason for the current upsurge in financial service access "25.4 million mobile money subscribers". That is why Kenya’s banked population is "NOW" the highest in Africa.

First of all, it is M-pesa, not P-mesa. Why was it invented in Kenya? because the pipo behind the innovation were based in Kenya.

Now let me put this question back to u, what was the percentage of the pipo with active bank accounts in Nigeria, before the invention of Mpesa in Kenya in 2007. And what about today? Is the percentage of the banked pipo in Ng really at per with SA's, the reason as u argue for the slow uptake? Dont lie!

]As it stands, only about 28.6 million adults in Nigeria have bank accounts and this represents 32.5 percent of the adult population, EFInA stated
http://thenationonlineng.net/what-hope-for-nigerias-unbanked-population/

Even bfore the advent of Mpesa in Kenya, around 2mn pipo had bank accounts, out of the popullation of 30-35mn.

Whilst out of the population of 170mn, only 30mn are financially included in Nigeria...........u surely need the Mpesa, quit the pride.

Learning while reading the comments

Hbuyosh:


First of all, it is M-pesa, not P-mesa. Why was it invented in Kenya? because the pipo behind the innovation were based in Kenya.

Now let me put this question back to u, what was the percentage of the pipo with active bank accounts in Nigeria, before the invention of Mpesa in Kenya in 2007. And what about today? Is the percentage of the banked pipo in Ng really at per with SA's, the reason as u argue for the slow uptake? Dont lie!

]As it stands, only about 28.6 million adults in Nigeria have bank accounts and this represents 32.5 percent of the adult population, EFInA stated
http://thenationonlineng.net/what-hope-for-nigerias-unbanked-population/

Even bfore the advent of Mpesa in Kenya, around 2mn pipo had bank accounts, out of the popullation of 30-35mn.

Whilst out of the population of 170mn, only 30mn are financially included in Nigeria...........u surely need the Mpesa, quit the pride.

Its obvious you are not knowledgeable about the concept of mobile money, it was invented to solve a key problem in 2007. Which it surely did, but you can't implement the same model in Nigeria or South Africa because of the difference in Market structure. That was why out of 21 mobile money service providers in Nigeria. Paga is the only one making headway, now listen, M-pesa have money and broader network (Vodacom/Airtel) in Nigeria. Ask yourself why didn't they launch it in Nigeria?

Because they were smart, they knew it won't work. Again, no one is arguing if we need mobile money service or not because we surely do, the argument is that M-pesa model can not work in Nigeria. Hence, the need for modification. After Paga, made the changes, it gained over 2 million users within 14 months compared to when it first started.

Truth234:

Similar

Pls, can I receive payment through paga from an international betting site?

Which one be paga?

PayPal now...

Which Paga? Their interphase is hard to navigate.
All the transactions I wanted to do thru never succeed.

They need improvement .....My own opinion

Am Mozambique the majority of people are using mpesa even we Nigerians here because it faster and reliable..

U can transfer money to any bank account or withdraw via mpesa.
It's even connected to atm machines.
We pay our water bill..electric bill
Even tax via mpesa.

It will make wave if lunch in Nigeria.
Due to the stress in Nigerian banking sectors

Ouch!

My problem really with all these number peddling.

5,010,709 Customers and counting
10,167+ Agents
4,913+ Businesses
US$800 million Processed

By how naaau? Who are these 5 million customers? In this same Naija that people are scared of opening accounts with banks who have solid structures on ground? Same Naija that business are scared of accepting POS transactions? Same Naija where Baba Ijebu agents chop your money and don't post your winning numbers na hin person go visit agents to transact?

The list of merchants on their website is not even up to 100 business yet they are mentioning 4,913+ Businesses!! Haba

Paga as a mobile money operator should tell us the percentage of users who got funds in their wallets and how much funds it holds in its wallet. It should be more than just reeling out numbers just to please investors.

Konga raised $70million in the past ....what do they have to show for it? Are they a force to reckon with in eCommerce space in Naija? How many states do they cover? Its all about the numbers .....know how you reel them out you will keep getting funded. This was what killed showroom.ng ....he couldn't reel out the numbers and did not get funded.

M-Pesa mobile money platform came to existence because there was a need for such system in rural Kenya and it worked for them. Paga .......I'm not sure has covered the rural areas in Nigeria or would be in a position to do that due to the poor telecommunication infrastructure in the country. Beside this, I believe the CBN or NIBSS rather should be in the position to blow this trumpet and not Paga if truly it is the case!

bigtt76:
My problem really with all these number peddling.

5,010,709 Customers and counting
10,167+ Agents
4,913+ Businesses
US$800 million Processed

By how naaau? Who are these 5 million customers? In this same Naija that people are scared of opening accounts with banks who have solid structures on ground? Same Naija that business are scared of accepting POS transactions? Same Naija where Baba Ijebu agents chop your money and don't post your winning numbers na hin person go visit agents to transact?

The list of merchants on their website is not even up to 100 business yet they are mentioning 4,913+ Businesses!! Haba

Paga as a mobile money operator should tell us the percentage of users who got funds in their wallets and how much funds it holds in its wallet. It should be more than just reeling out numbers just to please investors.

Konga raised $70million in the past ....what do they have to show for it? Are they a force to reckon with in eCommerce space in Naija? How many states do they cover? Its all about the numbers .....know how you reel them out you will keep getting funded. This was what killed showroom.ng ....he couldn't reel out the numbers and did not get funded.

M-Pesa mobile money platform came to existence because there was a need for such system in rural Kenya and it worked for them. Paga .......I'm not sure has covered the rural areas in Nigeria or would be in a position to do that due to the poor telecommunication infrastructure in the country. Beside this, I believe the CBN or NIBSS rather should be in the position to blow this trumpet and not Paga if truly it is the case!

mind blown
God bless you sis
you are really intelligent.
even fortis mobike money has more active agebts than first money and does volume.
its not in pagas place to blowbtheir own trumpet.
all those figures are not to be trusted.

bigtt76:
My problem really with all these number peddling.

5,010,709 Customers and counting
10,167+ Agents
4,913+ Businesses
US$800 million Processed

By how naaau? Who are these 5 million customers? In this same Naija that people are scared of opening accounts with banks who have solid structures on ground? Same Naija that business are scared of accepting POS transactions? Same Naija where Baba Ijebu agents chop your money and don't post your winning numbers na hin person go visit agents to transact?

The list of merchants on their website is not even up to 100 business yet they are mentioning 4,913+ Businesses!! Haba

Paga as a mobile money operator should tell us the percentage of users who got funds in their wallets and how much funds it holds in its wallet. It should be more than just reeling out numbers just to please investors.

Konga raised $70million in the past ....what do they have to show for it? Are they a force to reckon with in eCommerce space in Naija? How many states do they cover? Its all about the numbers .....know how you reel them out you will keep getting funded. This was what killed showroom.ng ....he couldn't reel out the numbers and did not get funded.

M-Pesa mobile money platform came to existence because there was a need for such system in rural Kenya and it worked for them. Paga .......I'm not sure has covered the rural areas in Nigeria or would be in a position to do that due to the poor telecommunication infrastructure in the country. Beside this, I believe the CBN or NIBSS rather should be in the position to blow this trumpet and not Paga if truly it is the case!

thank you very much. This is all hype. They are just throwing figures up and down. Who are the 900,000 active subscribers.

The truth is that our banks do not want mobile money to succeed as they also keep strengthening their mobile banking platforms. And mobile money services still need the full cooperation of the banks.
Same thing happening in Ghana.

I mean seriously ...just watch and see in a few weeks time, Paga will announce new round of funding. Funding to do what I don't understand. Loans they won't give, agents they don't have so what are they using these funds for?

See Konga they don't even have delivery vans any more. Thank God I turned down their job offer na so I for de sleep with one eye open ...I heard Sim is no longer there. These guys just setup business and soon they cut out from it.

Look at Jumia when they first started, touted as Nigeria's home grown platform. It was only later the so called 'founders' resigned and the real owners took over. Look at Andela, EazyTaxi, DealDey ....same thing.

These guys know only how to play with numbers nothing more!

kekakuz:
mind blown
God bless you sis
you are really intelligent.
even fortis mobike money has more active agebts than first money and does volume.
its not in pagas place to blowbtheir own trumpet.
all those figures are not to be trusted.

With paypal you can pay merchants worldwide. ..i have never heard of paga. .if they are only for peer to peer transfer & transactions. .how can do be put in the same conversation. ..

If Paga is transacting $816 million then how much is Interswitch (a card processing switch) processing through their platform? How much transaction is NIBSS (Nigeria Central Switch) processing nationwide?

rhymaholic:


thank you very much. This is all hype. They are just throwing figures up and down. Who are the 900,000 active subscribers.

bigtt76:
I mean seriously ...just watch and see in a few weeks time, Paga will announce new round of funding. Funding to do what I don't understand. Loans they won't give, agents they don't have so what are they using these funds for?

See Konga they don't even have delivery vans any more. Thank God I turned down their job offer na so I for de sleep with one eye open ...I heard Sim is no longer there. These guys just setup business and soon they cut out from it.

Look at Jumia when they first started, touted as Nigeria's home grown platform. It was only later the so called 'founders' resigned and the real owners took over. Look at Andela, EazyTaxi, DealDey ....same thing.

These guys know only how to play with numbers nothing more!

So you think it is impossible to have active 900,000 users in a nation of 180 million and a business that have raised million of dollars in capital? I think you need to understand their business model first. The five million is the total customers to date and the bulk of those are just money transfers to relatives, friends etc.,

showroom.ng failed because the founder lacked technical know-how not fund sister. This is 7th year of Paga in business.