PawaPay, a pan-African payments company, has secured a Payment Service Provider (PSP) licence in Mozambique. The licence, issued by the Bank of Mozambique, provides PawaPay with a direct route to over 12 million active mobile money accounts in the country. This development enables PawaPay to onboard merchants directly and offer regulated payment services in the market. The licence was obtained through PawaPay's local subsidiary, Quidexplus Mozambique.
Mozambique boasts over 12 million active mobile money accounts across three major operators: M-Pesa, E-Mola, and mKesh. The PSP licence allows PawaPay to operate in a market where limited licensed payment infrastructure has previously hindered businesses from operating at scale. Ilídio Matchebe, Mozambique Country Director at PawaPay, noted that merchants have lacked a reliable way to operate in the country at scale. The licence acquisition changes this, enabling PawaPay to connect merchants to the operators their customers already use.
With the licence, PawaPay expects to begin merchant onboarding in the coming days, allowing it to start commercial operations immediately. The company is also in discussions with M-Pesa, E-Mola, and international remittance providers to expand inbound payment flows into Mozambique. This presents an opportunity for PawaPay to grow beyond domestic merchant payments. The Mozambique expansion adds to PawaPay's regulated operations across 23 African markets, following a Central Bank of Kenya licence in Kenya last month.
PawaPay processes around 7 million transactions daily for businesses in sectors such as ride-hailing, remittances, retail, and non-governmental organisations. Founded in 2020, the company has processed over 3.5 billion transactions through its payments infrastructure. PawaPay's platform connects businesses to mobile money wallets across African markets through a single API, supporting collections, settlement, foreign exchange, and reconciliation.
The Mozambique expansion provides PawaPay with a direct foothold in a mobile money market where consumers heavily rely on digital wallets for everyday payments. This also offers international businesses another regulated channel to reach customers in the country. For merchants, the licence's immediate significance is direct onboarding and access to the country's three major mobile money networks through PawaPay's payments infrastructure.
PawaPay's regulated footprint across Africa is expanding, with the company having obtained licences in 23 markets. The PSP licence in Mozambique enables PawaPay to capture more payment flows locally as it grows its presence across the continent. With this development, PawaPay is well-positioned to increase its market share in the African payments industry.
The licence acquisition demonstrates PawaPay's commitment to expanding its services across Africa, providing businesses with a reliable and regulated payment infrastructure. As PawaPay continues to grow its presence in the region, it is likely to play a significant role in shaping the future of mobile money and payments in Africa.
Key points
- PawaPay secures PSP licence in Mozambique, granting access to 12 million active mobile money accounts.
- The licence enables PawaPay to onboard merchants directly and offer regulated payment services in Mozambique.
- PawaPay's regulated operations now span 23 African markets, following the Mozambique expansion.
