Lagos is comparable to New York as a center for payment startup companies
In the dynamic world of cross-border payments, emerging markets like Africa and cities such as Lagos, Nigeria are making a significant mark. Our latest report reveals key trends in cross-border payments startups since early 2022, highlighting Lagos' growing importance as a payments hub.
According to the report, Lagos came joint second with New York in terms of cities with the most cross-border payments startups founded since the start of 2022. Remarkably, 7% of these startups were based in Lagos, placing it behind only London and on par with New York, underscoring its growing significance.
The report also shows a stronger presence of emerging markets in the list of new cross-border payments startups compared to larger, more established companies. This shift indicates a changing landscape in the global payments industry, with Lagos playing a pivotal role.
One of the key trends in these new startups is the focus on expanding payment networks. Fintech companies are obtaining licenses in various emerging markets to facilitate local pay-ins and pay-outs as well as international remittances. This strategy is reflected in the growth of Uruguay-based fintech dLocal, which expanded into the UAE, Turkey, and the Philippines in 2025.
Another trend is the adoption of Account-to-Account (A2A) payments and open banking. Major players like Visa and Mastercard have pioneered real-time, bank-to-bank payment services, offering faster settlement and improved cash flow visibility. This technology is increasingly being integrated by banks and fintech startups globally, including in emerging markets.
Financial inclusion initiatives are also a significant focus for these startups. They are serving unbanked or underbanked consumers through prepaid cards with flexible ID requirements and financial literacy tools. For instance, the UK fintech allpay launched DOSH, a prepaid Mastercard account targeting unbanked consumers, a model relevant to markets like Lagos.
The report also highlights the use of blockchain and crypto bridging technologies by startups like Ripple Labs. These companies focus on blockchain-based solutions for fast, low-cost cross-border transactions, enhancing liquidity and efficiency of international payments.
Lastly, the report emphasises the importance of local market adaptation and partnerships in the growth of cross-border payments in emerging markets like Lagos. This involves partnerships with domestic fintech firms to navigate regulatory frameworks and local consumer behavior, as startups adapt their offerings for regional needs.
In conclusion, since 2022, cross-border payments startups in emerging markets have trended toward combining regulatory expansion, open banking innovation, blockchain technology, and financial inclusion strategies. Lagos, Nigeria, as a fintech hub, aligns with these trends by fostering startups that blend local market integration with cutting-edge payment infrastructure.
While specific data for Lagos-based startups was not provided in the report, the regional exemplification via dLocal’s emerging market growth and Visa/Mastercard’s open banking initiatives symbolize broader fintech dynamics relevant to African cities. The future looks promising for Lagos and the wider African payments landscape.
The report reveals that Lagos, Nigeria came joint second with New York in terms of cities with the most cross-border payments startups founded since early 2022, with 7% of these startups based in Lagos.
Financial inclusion initiatives, such as prepaid cards with flexible ID requirements and financial literacy tools, are a significant focus for these Lagos-based startups.
