Fintech & Ecommerce

African Neobank Payday Raises $3 Million for Expansion

The fresh funding will help the ambitious Payday to scale its platform and reach more Africans, not only on the continent but around the world

African Neobank Payday Raises $3 Million for Expansion

Image: pixabay

African neobank Payday has raised $3 million in a fresh funding round, looking to enter new markets and expand its activities in the existing ones.

The startup currently has offices in Rwanda and Vancouver. It plans to use the received funding to secure operational licensing in the UK and Canada as well as expand its operations in Great Britain, where Payday was recently incorporated.

At the same time, money will be used to boost talent acquisition as the neobank’s team expands from 35 to 50 employees.

The investment represents a significant milestone for the company, aiming to expand its services to a broader audience and “fuel the future of work through borderless payment alternatives in major currencies.”

Since launching the banking app update in January this year, Payday has added 100,000+ users monthly. The payment features provided include:

  • Global Accounts (USD, GBP, EUR, etc.)
  • Virtual USD & NGN Cards
  • Currency Swaps
  • Payment Links
  • Local Bills Payment
  • Peer-to-Peer Transfers
  • The possibility to add user account information to platforms such as Deel to receive salaries in minutes rather than days.

The company claims it has processed millions of dollars in transactions for customers in Rwanda, Nigeria and the U.K. using its digital app since 2021.

Along with the new funding, Payday announced it had welcomed new members to its co-founding team, including Elijah Kingson, a veteran of U.K. neobank Revolut, and Sean Udeke, former board member at Goldman Sachs and product manager for Expedia.

Fintech market in Africa is booming since legacy institutions are failing to satisfy customers’ needs for remittance payments and basic banking.

As we have reported, Western Union announced the beginning of cooperation with MFS Africa to create opportunities for making mobile money transfers in all countries of Africa.

Nina Bobro

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Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.