Pagatech is the brainchild of Tayo Oviosu, a Stanford graduate who upon finishing his studies created a startup company to meet a unique need within the Nigerian financial sector.
Across Nigeria, roughly 60% of ATMs are located in Lagos state alone, debit cards are not accepted by all merchants and currently there is no safe, secure way to transfer money outside of using banks. Nigeria is a heavily cash based economy where people carry money around to buy everything and with the high inflation rate, it means carrying large sums of money. This creates a security risk that is highly threatening and not experienced in the Western world.
Tayo Oviosu explored these problems and realizing that more than half of the Nigerian populace are cell phone users, he came up with the idea of using cell phones as a means to safely and easily transfer money, hence Pagatech was born. Pagatech is the 1st mobile money company leading the market in turning Nigeria into a cashless society.
Progress Report & 234 Impact
Oviosu pitched his idea to Tim Draper, one of Silicon Valley’s well known venture capitalist and Draper took the bait and backed up the company healthily.
Pagatech hires local talent to deliver its services and physical agents for customers who prefer trading with a physical person.
Paga is set for expansion and this promises more jobs for the Nigerian economy. Since its inception in September 2010, the company boasts 32,000 users and has processed $1.6 million in transactions.
Pagatech received its “Approved in Principle” license from the Central Bank of Nigeria in February 2011. The advent of Pagatech has aided numerous transactions and has also attracted foreign investors and business partners to Nigeria.