FINTECH AFRICA | PayPal Plans Wallet-to-Wallet Payments in Africa With PayPal World Using Local Payment Systems

In July 2025, Nigerians quietly regained something many had been missing for years: the ability to make international payments with their bank cards. Subscriptions began working again, foreign tools became easier to pay for, and online checkouts stopped failing as often.

While that didn’t solve the larger issue of cross-border payments in Africa, it underscored how strong the demand remains for simpler ways to move money internationally. Now, another shift may be taking shape as PayPal is in talks with African fintechs ahead of a planned 2026 launch of PayPal World.

The concept behind PayPal World in Africa is a cross-border digital wallet layer that sits on top of existing local wallets. Rather than requiring users to create new PayPal accounts, the system would connect the wallets people already use to PayPal’s global merchant network, managing interoperability in the background.

This approach builds on how PayPal World has already begun rolling out in markets like India, China, and Brazil, where it partners with dominant local payment systems such as UPI, WeChat Pay, and Mercado Pago. Those platforms handle the majority of daily transactions in their regions, much like mobile money services and bank-backed wallets do across Africa. Instead of replacing them, PayPal aims to act as a bridge between local payment preferences and international commerce.

In October 2025, PayPal adopted the Agentic Commerce Protocol enabling payments and commerce directly within the ChatGPT platform by 2026. This will enable ChatGPT users, including from Nigeria and Africa, to check out instantly using PayPal once the AI platform launches its OpenAI Instant Checkout.

“Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop. By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases,” said Alex Chriss, President and CEO of PayPal.

If the plan unfolds as described, users would make payments with their local wallet, select a PayPal option, and let PayPal handle the cross-border portion of the transaction. Merchants already integrated with PayPal wouldn’t need to undertake new technical work, and users could avoid the friction of failed payments or opening additional accounts. In a region where wallets work well domestically but struggle with international payments, that distinction matters.

This model also aligns with the realities of African payments, which are highly regulated and fragmented by country. Compliance responsibilities often remain with licensed local providers. By partnering with those providers rather than building standalone wallets, PayPal can reduce regulatory friction while extending its reach.

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PayPal already works with African fintechs like M-PESA and Flutterwave, primarily to facilitate receiving funds from abroad. PayPal World would expand that relationship by enabling broader wallet-to-wallet use cases, including direct payments to foreign merchants. If it comes together as planned, it may not transform everyday payments overnight — but it could make cross-border transactions feel significantly easier than they do today.

In August 2025, Safaricom and PayPal announced an enhanced partnership aimed at streamlining money transfers between M-PESA and PayPal, enabling millions of Kenyans to better access global e-commerce and digital services.

The collaboration, first launched in 2018, allows users to seamlessly move funds between their M-PESA wallets and PayPal accounts – enabling local freelancers, SMEs, and online shoppers to participate in the global digital economy more easily.

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In 2025, PayPal has been accelerating the adoption of digital currencies in commerce by enabling fast, low-cost international payments through its stablecoin, PayPal USD (PYUSD). Businesses and consumers can now send PYUSD across borders in seconds, with lower fees and greater transparency compared to traditional payment rails.

“Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations. Today, we’re removing these barriers and helping every business of every size achieve their goals,” said Alex Chriss, President and CEO, PayPal.

“Imagine a shopper in Guatemala buying a special gift from a merchant in Oklahoma City. Using PayPal’s open platform, the business can accept crypto for payments, increase their profit margins, pay lower transaction fees, get near instant access to proceeds, and grow funds stored as PYUSD at 4%5 when held on PayPal.”

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