African payments startup Nala has been granted Payment Service Provider and Payment System Operator licences by the Bank of Uganda, expanding its regulatory footprint in East Africa.
The approvals allow Nala to operate across key layers of Uganda's payments infrastructure. The company now holds three active licences in the country, including a money remittance licence issued in 2024. This places Nala among a small group of fully licensed payments operators in Uganda.
Founded as a cross-border payments and money transfer platform, Nala enables users in Europe, the UK, and the US to send money to Tanzania, Kenya, Rwanda, Uganda, and Ghana. In 2023, the company expanded into the European Union, adding 19 send countries. Last year, Nala raised $40 million in funding.
The Nala consumer app, launched in 2022, supports payments to more than 249 banks and 26 mobile money services across 16 countries in Africa and Asia. The company recently received approval to operate in Ghana and has continued to expand its regulated presence across the continent.
Keep up with the latest headlines on WhatsApp | LinkedIn
Chief executive Benjamin Fernandes said the licences signal a long-term commitment to Uganda and support investment in local payment infrastructure and partnerships.
Daba's newsletter is now on Substack. Sign up here to get the best of Africa's investment landscape
Key Takeaways
Licensing has become a central competitive factor for African payments companies as regulators tighten oversight of digital finance. Markets such as Uganda require operators to hold multiple approvals to handle payment processing, switching, and settlement, increasing barriers to entry but also strengthening system stability. For cross-border fintechs, local licences reduce reliance on third-party intermediaries and allow deeper integration with domestic banks and mobile money operators.
This can improve transaction speed, cost control, and reliability for both consumers and businesses. Uganda has positioned itself as a regulated but open payments market, attracting companies that are willing to invest in compliance and infrastructure. Payments firms that secure full operating approval gain the ability to build APIs and services that support merchants, developers, and regional expansion.
As remittance flows remain a major source of foreign currency for East Africa, regulators have focused on ensuring that platforms handling these flows are well capitalised and supervised. Companies that meet these standards are better placed to scale across borders while maintaining regulatory trust.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
