Pan-African Fintech startup Payday has secured a $3 million investment to transform Africa’s borderless payments.
The funding round was led by Moniepoint, a fintech company that provides an all-in-one payment, banking, and operations platform for businesses. Other investors include; HoaQ, Ingressive Capital Fund II, Techstars, DFS Lab’s Stellar Africa Fund, Angels Touch, and Norabase CEO Tola Onayemi.
The recent investment brings PayDay’s total investment to $5.1 million following a $2m+ pre-seed round secured in 2021. The new capital raised will be used to secure operational licensing in the United Kingdom, where the company has been incorporated.
Speaking on the recent fund secured, the CEO of Payday Favour Ori said, “We are building TransferWise for Africa, we want our customers to move money faster with the bank accounts and cards we issue. Other platforms focus on Africans in the diaspora. We are focusing on people in Africa while planning to focus on those abroad by expanding to the U.K.
“We are targeting the future of work by targeting remote workers and freelancers, and we want to be able to study customer and spend behaviors and use that to offer loans. We also want to issue credit cards where if you are a student trying to go to the U.S, you can start building your credit from Nigeria with PayDay”.
Founded in 2021 with its headquarters in Rwanda, PayDay is revolutionizing the way African remote workers and freelancers in Rwanda and Nigeria handle their finances. By allowing users to send and receive money in a different range of currencies which includes, Dollars, Pounds, euros, and several others.
The startup has enabled users and those in the diaspora who work remotely for international organizations to be paid and withdraw money in their preferred currency. With its operations in Nigeria, Rwanda, and the UK, Payday offers its thousands of users virtual, visa and Mastercards, which can quickly be generated using the PayDay App.
Currently, an estimated 80 million Africans work remotely, with PayDay’s global payment processing capabilities, it has made the platform a desirable tool for the continent’s growing digital nomad population looking to make and accept payments from anywhere in the world.
PayDay has so far amassed remarkable traction since its inception. The startup processes an impressive average of 40,000 transactions per day, with its user base continuing to increase.
It is interesting to note that in February 2023, following complaints from Nigerians over the inability to purchase Starlink internet locally, the Internet satellite company partnered with PayDay to facilitate payment transactions in Nigeria. The groundbreaking partnership has processed nearly $1 million, Investors King understands.