Nigerian fintech Paga has expanded its direct debit service, allowing businesses that use its payments platform to collect recurring payments from customers with accounts at other Nigerian financial institutions. The change gives lenders and subscription businesses a way to collect scheduled payments directly from participating bank accounts once customers have authorised them.
How customers authorise payments
Businesses set up an electronic mandate through Paga Engine, the company’s payments platform for businesses. The customer then authorises the mandate with their bank. Once it is active, the business can collect payments when they fall due under the agreed terms. Customers can use their existing bank accounts for those payments without making a separate transfer each time.
A lender, for example, could use the service to collect loan instalments on agreed dates, while a subscription provider could use it for monthly fees. The expansion uses existing interbank payment infrastructure, according to Paga Engine general manager Ramon Bello. That connection lets businesses reach customers across several financial institutions through one integration.
Paga expands its business payments operation
The move extends Paga’s business beyond the consumer payments services for which it is known. The company is making the technology it developed for its own operations available to other businesses through Paga Engine, which also provides payment processing and digital wallet tools. Bello said the platform already serves more than 400 businesses across sectors including manufacturing, fintech, e-commerce and digital content.
Paga joins a market where providers including Paystack and Flutterwave already offer automated bank account collections. For businesses that bill regularly, the practical question is how many of their customers’ banks each provider can reach and how easily they can manage payments through their existing systems. For customers, the key change is that they can authorise recurring payments from a participating bank account they already use.
Newshub Editorial in Africa – 6 November 2026
Nigerian fintech Paga has expanded its direct debit service, allowing businesses that use its payments platform to collect recurring payments from customers with accounts at other Nigerian financial institutions. The change gives lenders and subscription businesses a way to collect scheduled payments directly from participating bank accounts once customers have authorised them.
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