PayPal x Paga Partnership

After nearly 20 years of giving Nigeria the cold shoulder, PayPal has officially returned. On January 27, 2026, they partnered with Paga to finally allow Nigerians to receive money and withdraw it in Naira.

This sounds like great news, right? But here is the twist: most young Nigerians are not celebrating. In fact, they are pretty annoyed. Why? Because using this new method costs way more money than the alternatives they already use (like Crypto or apps like Grey).

This post breaks down exactly what happened, how it works, and why the math might not be in your favor.

What Actually Happened?

For a long time, if you had a Nigerian PayPal account, you could only send money (to buy stuff on eBay or pay for Apple Music). You couldn't receive a dime.

The New Deal:

• Who: PayPal (Global Giant) + Paga (Local Champion).
• The Feature: You can now link your PayPal account to your Paga app.
• The Capability: You can receive money from 200+ countries and withdraw it directly to your Nigerian bank account via Paga.
• Bonus: You can even receive money from Venmo users in the USA.

Why is Everyone Unhappy?

If you check Twitter (X) or tech blogs, the vibe is negative. It comes down to two simple things: Exchange Rates and Trust.

1. The Trust Issues

PayPal has a reputation for freezing accounts without warning. Many Nigerians still remember being banned in 2004.

The Fear: Users are worried they will wake up one day to find their funds "locked for 180 days" with no customer support to call.

The Sentiment: "Why use a platform that treats us like suspects when we have better local options?"

2. The Money Math (You Lose Cash)

The biggest issue is the difference between the Official Exchange Rate and the Black Market (Street) Rate.

• The Paga/PayPal Way: Because they are regulated companies, they have to use an exchange rate that is close to the official banking rate.
• The Crypto/Street Way: Most Nigerian freelancers use Crypto (USDT) because they get the "Black Market" rate, which is usually much higher.

Let's look at a $1,000 example:

Metric	Using PayPal + Paga	Using Crypto (USDT)
Fees	PayPal takes ~4.5% ($45)	Network fees are tiny (~$1)
Exchange Rate	Lower (Official Rate)	Higher (Street Rate)
You Receive	Less Naira	More Naira

The Result: You could lose 15% to 20% of your money just by choosing PayPal over Crypto. For a freelancer working hard for dollars, that is a dealbreaker.

How It Works (If You Still Want to Use It)

If you have a client who insists on paying via PayPal, here is how you set it up on Paga. It is actually quite simple.

1. Get Verified: Make sure your Paga account is fully verified (you'll need your BVN).
2. Link It: Go to your Paga dashboard, select "Link PayPal," and log in with your PayPal details.
3. Receive: Give your email to your client.
4. Withdraw: When the money hits, withdraw it to your Paga wallet in Naira.

Competition: Who Does It Better?

PayPal is late to the party. While they were gone, other apps stepped up.

• Grey / Geegpay: These apps give you a virtual foreign bank account (like a UK or US account). You get paid there, and they swap it to Naira at a rate much closer to the black market.
• Crypto (Stablecoins): The king of payments in Nigeria. It’s instant, the fees are near-zero, and you get the best possible exchange rate.

PayPal + Paga is great for:

• Receiving small amounts of money from family abroad (remittances).
• Business owners who need a "trust badge" on their website to make international customers feel safe.

People who find Crypto too complicated.

It is NOT great for:

• Freelancers who want to keep every penny of their earnings.
• Digital nomads who need the best exchange rates to survive inflation.

Bottom Line: It is good to have PayPal back as an option, but for most Nigerians watching their bottom line, the "old ways" (Crypto/Grey) are still the winning ways.