• Uruguay-based dLocal announces plan to acquire African fintech AZA Finance

• Deal aims to boost cross-border payments and currency exchange services in Africa

• Africa's payment market could hit $1 trillion by 2035, despite high transfer costs

dLocal, a global fintech company specializing in cross-border payment solutions, announced on June 2 that it plans to acquire AZA Finance, a Nairobi-based digital finance firm. AZA Finance offers payment and foreign exchange services tailored to businesses operating in Africa. The value of the deal was not disclosed and is still subject to regulatory approval in countries where both firms operate.

Founded in 2016 in Montevideo, Uruguay, dLocal provides a platform that helps global merchants process payments across more than 40 emerging markets in Latin America, Africa, and Asia. Its services include local payment collection, international money transfers, and digital payment tools for online platforms.

dLocal sees Africa as a high-growth market for digital and cross-border payments. The acquisition of AZA Finance is expected to strengthen its footprint on the continent.

AZA Finance, previously known as BitPesa, was launched in 2013 in Kenya. Since then, it has processed more than 15 million transactions worth a combined total of over $9 billion. The company serves clients in 183 countries, offering services such as currency trading, international payments, treasury management, and settlement solutions for businesses.

By acquiring AZA Finance, dLocal will gain stronger operational capacity in Africa, particularly in remittance services and currency exchange. The move will also bring in additional technical capabilities, including over-the-counter (OTC) foreign exchange operations. Just as important, AZA adds local market expertise and on-the-ground knowledge that dLocal says will be key to accelerating its growth strategy in the region.

Carlos Menendez, Chief Operating Officer of dLocal, said the acquisition would make it easier for dLocal's global merchants to reach Africa’s fast-growing economies:

“Our acquisition of AZA Finance will increase access for our global merchants to Africa’s dynamic, growing markets, while further strengthening our commitment to the region. By combining dLocal and AZA Finance, we are well-positioned to offer innovative, efficient, and localized payment solutions to help businesses and individuals prosper in this rapidly evolving region.”

According to a report released by Oui Capital on May 27 the African cross-border payments market is expected to triple by 2035, growing from about $329 billion today to $1 trillion. The report forecasts 12% annual growth, driven by increased adoption of digital tools and rising intra-African migration.

Still, several barriers remain. Africa has the highest remittance costs in the world, ranging between 7.4% and 8.3% depending on the payment corridor. These high costs stem from multiple factors, including fragmented regulations, poor interoperability between payment systems, and continued reliance on traditional money transfer channels.