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Paga

Paga
Personal FinanceBanking

What Is Paga?

Paga is a mobile payment platform that allows its users to transfer money electronically and make payments through their mobile gadgets. Paga acts as a mobile wallet where any client furnished with a mobile gadget can conduct transactional activities utilizing their gadget. Paga was established in Nigeria in 2009 by Tayo Oviosu and publicly sent off in 2011.

How Paga Works

Paga was acquainted in Nigeria with exploit the cash development in the system and to make a means by which financial services are available to all. Albeit the banking sector in Nigeria isn't effectively accessible to everybody, the telecommunications industry has been more fruitful in arriving at a large portion of the country's population.

The cooperation of both the banking and telecom sector has given rise to mobile banking platforms like Paga, where a client can perform fundamental financial transactions with the utilization of a cellphone. Paga manages a mobile telephone application or online through the company's website.

With Paga, customers are able to deposit and set aside cash, purchase prepaid telephone credit, pay utility and cable bills, and make payments to retailers. The partnership among Paga and Western Union additionally has the additional benefit where Western Money transfers shipped off users can be deposited into their Paga accounts.

Paga has numerous outlets across the country where its agents act as human ATMs. A Paga account holder or nonholder who necessities to transfer money would give the agent the beneficiary's telephone number. The agent utilizes their telephone to handle the transaction and debits the shipper's account for the amount to be sent and the transaction fee.

Different Services

Another option that is exclusive to account holders is the online option, where the account holder can utilize a web enabled mobile gadget to handle the transaction himself. The Paga account can be funded by depositing money with an agent, at a bank, or by utilizing a debit card online.

After funds have been deposited and transferred, the shipper and beneficiary both receive a SMS confirmation, which fills in as a receipt of the transaction. The SMS received by the shipper confirms the amount of funds debited from the account and a withdrawal code required to access the funds which they would transfer to the beneficiary. The beneficiary purposes the withdrawal code at an outlet or a partner bank to pull out the money sent.

Notwithstanding essential banking transactions offered through the mobile payments app and website, Paga has a checkout payment platform that business owners, SMEs, and merchants can coordinate on their own websites. Clients of these businesses additionally have the option of making and getting payments through Paga's mobile services and agent outlets.

Special Considerations

The coming of imaginative technology in the financial sector (fintech) has seen a phenomenon by which a cash-driven economy is rapidly developing into a digital money economy. Consumers and businesses are adjusting to emerging advancements that are making financial products and services accessible to everyone for low costs.

Nonetheless, as developed economies are progressing in financial technology platforms and offerings, some developing nations are lagging in such manner. Some rural areas of developing countries don't have simple access to banks, and assuming they do, the minimum deposits required by the banks may be unattainable for the residents of the community. One of the drives of fintech is to accomplish financial inclusion all around the world.

The concept of financial inclusion looks to incorporate the unbanked and underbanked population in the digital banking period. Mobile banking systems, for example, Paga are being implemented to combat financial exclusion.

Requirements for Paga

To forestall fraudulent transactions, Paga has put certain measures in place to safeguard its users. A client signing into an unnoticed gadget, for example, should answer two or three security inquiries before continuing. Once more, every transaction utilizing Paga must be finished with a personal PIN known exclusively to the client.

Furthermore, every client is assembled into three levels. Level I customers are the people who registered with a full name and telephone number and are limited to a maximum transfer value of \u20a650,000 (or $138, as of Dec. 2019) every day. Level II customers have their names, telephones, locations, and ID card information on file and can transfer up to \u20a6200,000 (or $551) each day. At last, Level III clients have a maximum transfer limit of \u20a65,000,000 (or $13,780) each day and have two references and a credit check on file notwithstanding the Level II information provided.

A number of other mobile wallet and payment service platforms are progressively being implemented in emerging nations that have a high percentage of unbanked gatherings. M-Pesa, MTN Mobile Money, Airtel Money, and Orange Money are examples of mobile banking applications that are being employed to remember all individuals for the developing digital financial circle.

Highlights

  • Paga likewise offers essential banking services, for example, savings accounts, wire transfers, and merchant services.
  • Paga is a mobile telephone based payments platform that was first sent off in Nigeria in 2011.
  • Emergent technology in the financial sector has made it feasible for unbanked individuals to pay for and receive goods and services utilizing a mobile telephone as opposed to using a brick-and-mortar bank.