Uganda: Nala Secures PSP and PSO Licences From Bank of Uganda

Cross-border payments company Nala has secured both Payment Service Provider (PSP) and Payment Service Operator (PSO) licences from the Bank of Uganda (BoU), marking a significant regulatory milestone in the country’s fast-growing digital payments ecosystem.

The dual licensing authorises Nala to offer regulated payment services while also operating core payment infrastructure within Uganda. Together, the approvals position the company to deepen its footprint across East Africa and strengthen its offering for individuals and businesses seeking faster, more reliable, and compliant cross-border transactions.

The Bank of Uganda’s decision reflects the regulator’s ongoing efforts to formalise and modernise Uganda’s payments landscape, following the implementation of the National Payment Systems Act. By issuing both PSP and PSO licences, BoU enables licensed firms to innovate while maintaining robust standards around consumer protection, capital adequacy, risk management, and anti-money laundering controls.

For Nala, the licences unlock the ability to process domestic and international payments, integrate directly with local financial institutions, and support use cases such as remittances, merchant payments, and wallet-based transfers. The approval also allows the company to scale infrastructure locally, reducing reliance on third-party operators and improving transaction speed, cost efficiency, and reliability for users in Uganda and beyond.

Industry analysts view the development as a strong signal of Uganda’s growing attractiveness to fintech investment. With mobile money penetration among the highest in Africa and a young, digitally native population, the country has become a strategic hub for payment innovators targeting regional expansion. Regulatory clarity—particularly around licensing—has been a key factor in accelerating this momentum.

Nala’s entry as a fully licensed PSP and PSO is expected to increase competition in the payments sector, potentially driving down transaction costs and expanding access to formal financial services. Small and medium-sized enterprises, cross-border traders, and diaspora users stand to benefit from improved settlement times and more transparent pricing.

The company indicated that the licences will support new product rollouts tailored to the Ugandan market, alongside partnerships with banks, mobile money operators, and merchants. Over time, this could contribute to broader financial inclusion goals by enabling seamless digital payments for under-banked users and regional businesses.

As regulators across Africa continue to balance innovation with oversight, Nala’s approvals underscore a broader trend: licensed, compliance-first fintechs are increasingly shaping the future of payments on the continent. For Uganda, the move reinforces its ambition to be a regional leader in digital finance while for Nala, it represents a critical step toward building a scalable, pan-African payments platform.