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Paga acquires Apposit targetting global expansion and financial inclusion

Paga, a Nigerian digital payment startup has acquired Apposit, a software development company with the aim of expanding its operations into East Africa and Latin America. With the acquisition, the company is also planning to launch its payment products in Mexico this year. The financial details of the deal have not yet been disclosed.

The acquisition is part of Paga’s plans to drive financial inclusion via digital channels in underserved markets like Ethiopia.

“The goal is straightforward. We want Ethiopians to use the Paga wallet as their payment account. So it’s about digitizing cash transactions and driving financial services,” said Tayo Oviosu, CEO and founder of Paga.

Paga has been working closely with Apposit from 2010. Apposit dedicated an engineering team to build Paga’s payment platform. Eric Chijioke who was working with Apposit became Paga’s CTO while maintaining the technical engineer role at Apposit.

Apposit was responsible for the digitisation of the Ethiopian Commodities Exchange and has contracted on IT and software solutions with banks, non-profits, and brick and mortar companies.

Paga has created a multi-channel network to transfer money, pay-bills, and buy things digitally.  Its products work on iOS, Android, and basic USSD phones using a star, hashtag option. The company has remittance partnership with the likes of Western Union and allows for third-party integration of its app. It is planning to go live in Ethiopia as soon as it gains local regulatory approval.

The company considers PayPal, Safaricom’s M-Pesa and Alipay to be its competitors in the emerging market. In 2018, Paga closed a $10 million funding deal as it prepared to expand globally. The company released its payments product in Ethiopia, Mexico and the Philippines.

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