Western Union, Payment Platform Target Nigeria In Africa Remittance Expansion

Global money transfer firm Western Union and digital payments platform dLocal are targeting Nigeria as part of plans to expand their remittance payout partnership across Africa, following the launch of the expanded service in Cameroon.

The proposed expansion could widen access to digital remittance services in Nigeria by enabling recipients to receive money through bank transfers and digital wallets, subject to the companies’ plans and applicable regulatory requirements.

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The development comes as remittances remain a significant source of foreign exchange and household income across Sub-Saharan Africa, with millions of families depending on money sent by relatives and other individuals abroad to meet essential expenses.

In a joint announcement dated October 15, 2026, the two companies said they had expanded their existing partnership to include remittance payouts, building on their collections arrangement. Cameroon is the first market to launch under the expanded agreement.

The companies said they were exploring opportunities to extend the payout services to other African markets, including Nigeria, with bank transfers and digital wallets expected to form part of the broader expansion.

The World Bank estimates that remittance flows into Sub-Saharan Africa reached approximately $57 billion in 2024, underscoring the importance of cross-border transfers to households and national economies across the region.

Under the expanded partnership, dLocal will provide the technology and connectivity infrastructure, while regulated local partners, including mobile network operators and financial institutions, will execute the relevant payment and payout services.

The arrangement is designed to connect the different stages of international money transfers, allowing Western Union to rely on a single partner for both collections and payouts in supported markets.

For Nigeria, the potential expansion could provide additional channels for recipients to access money sent from abroad, particularly through bank accounts and mobile wallets. However, the companies have not announced a launch date for the Nigerian market.

Speaking on the expansion, Western Union’s Regional Vice President and Head of Africa, Mohamed Touhami El Ouazzani, said the company’s priority was to ensure that customers could receive their money reliably and seamlessly, regardless of their location.

“At Western Union, our priority is always to ensure that our customers get their money reliably, seamlessly, wherever they may be,” he said.

He added that extending the company’s collaboration with dLocal to cover payouts would help deliver the same level of reliability on the receiving end of transactions, beginning with markets such as Cameroon.

For dLocal, the expanded agreement is intended to address the challenges that arise when the collection and disbursement sides of remittance transactions operate through separate arrangements.

Agustin Botta, Head of Europe, the Middle East and Africa at dLocal, said the partnership would help bridge the gap between sending money and ensuring that recipients could access it.

“Collections and payouts have always been treated as two separate problems,” Botta said.

“Half a remittance solved is still half a problem. With Western Union, we’re working together to close that gap, building a more consistent path from send to receipt,” he added.

The initial rollout in Cameroon focuses on direct remittance payments into supported local digital wallets through regulated payout partners. The model is intended to improve access in markets where payment systems are fragmented and recipients may have limited reliable options for receiving international transfers.

The companies said the expansion would also strengthen the infrastructure needed to support digital remittance corridors across emerging markets, where recipients increasingly expect the same speed and reliability when receiving money as senders experience when initiating transfers.

Nigeria’s inclusion in the companies’ expansion plans could create additional opportunities for digital payment providers and financial institutions, although the scale of any benefits will depend on the services introduced, the coverage of participating institutions and the terms under which the payout channels operate.

Beyond the immediate convenience for recipients, more accessible remittance channels could support household spending and provide funds for education, healthcare, small businesses and other essential needs. However, the extent to which the proposed services would reduce transfer costs or improve transaction times in Nigeria has not yet been disclosed.

Western Union operates an international money transfer network, while dLocal connects global businesses with payment systems in emerging markets across Africa, Latin America, Asia and the Middle East.

Through its One dLocal platform, the company enables businesses to accept payments, send payouts and settle funds across markets without having to manage multiple payment integrations independently.

The expanded partnership reflects a broader push to make cross-border transfers more accessible by connecting international money transfer networks with local payment infrastructure.

Although Cameroon is the first market to benefit from the new arrangement, the planned exploration of additional African markets, including Nigeria, signals the companies’ intention to extend the model to more remittance corridors.

For now, the Nigerian expansion remains under consideration, with the timing and operational details yet to be announced.