African payments startup Nala has significantly expanded its regulatory footprint in East Africa by securing Payment Service Provider (PSP) and Payment System Operator (PSO) licences from the Bank of Uganda. These new approvals, granted on January 6, 2026, enable Nala to operate across critical layers of Uganda’s payments infrastructure. This brings Nala's total active licences in Uganda to three, including a money remittance licence issued in 2024, positioning it among a select group of fully licensed payments operators in the country.

Nala was founded as a cross-border payments and money transfer platform, facilitating transactions for users in Europe, the UK, and the US to send money to various African nations, including Tanzania, Kenya, Rwanda, Uganda, and Ghana. The company demonstrated significant growth in 2023 by expanding its services into the European Union, adding 19 new send countries. In the past year, Nala successfully raised $40 million in funding, bolstering its capacity for further expansion and development.

The Nala consumer app, initially launched in 2022, offers extensive support for payments to over 249 banks and 26 mobile money services across 16 countries in both Africa and Asia. The company continues its strategic continental expansion, having recently received approval to operate in Ghana. According to Chief Executive Benjamin Fernandes, these latest licences signify Nala's long-term commitment to Uganda and will support crucial investments in local payment infrastructure and partnerships within the country.

The acquisition of robust licensing has become a pivotal competitive factor for African payments companies, particularly as regulators intensify their oversight of the rapidly evolving digital finance sector. Markets such as Uganda often mandate operators to hold multiple approvals for various functions like payment processing, switching, and settlement. While this raises barriers to entry, it concurrently strengthens the overall stability of the payment system.

For cross-border fintech firms like Nala, securing local licences is crucial. It reduces reliance on third-party intermediaries, enabling deeper and more direct integration with domestic banks and mobile money operators. This direct engagement significantly enhances transaction speed, improves cost control, and increases reliability for both individual consumers and businesses. Uganda has proactively positioned itself as a regulated yet open payments market, effectively attracting companies willing to invest in compliance and infrastructure development.

Payments firms that successfully obtain full operating approval gain a strategic advantage, allowing them to build custom APIs and services. These capabilities can then support local merchants, developers, and facilitate broader regional expansion. Given that remittance flows represent a substantial source of foreign currency for East Africa, regulators are keenly focused on ensuring that platforms handling these vital financial flows are adequately capitalized and rigorously supervised. Companies that consistently meet these stringent standards are inherently better positioned to scale their operations across borders while maintaining invaluable regulatory trust and confidence.