African Fintech Payday Raises USD 3 M Seed Funding Round

Payday, a neobank issuing global (USD, EUR & GBP) accounts to Africans, has raised USD 3 M that it intends to use to fuel its “future of work” initiative through borderless payment alternatives in major currencies. The oversubscribed seed investment was led by Moniepoint Inc. (formerly TeamApt Inc). Other investors participated, including Techstars, HoaQ, DFS Lab’s Stellar Africa Fund, Ingressive Capital Fund II and angel investors such as MFS Africa chief Dare Okoudjou and Norebase CEO Tola Onayemi. Existing investors like Techstars and Angels Touch followed on.

Payday facilitates sending and receiving of money globally from Africa by enabling payments between foreign employers and clients. The company also issues visual Mastercards and enables people to pay tuition and other fees in the United States, Canada, and the United Kingdom. With Payday, African remote workers and freelancers, particularly in Nigeria and Rwanda, can send and receive money in USD, GBP and EUR, as well as 20 other currencies. This allows them and those in the diaspora who work remotely for international organizations to be paid and withdraw money in their currency choice. Payday also offers virtual dollar and naira cards (which allow Nigerian users to purchase goods and services on foreign platforms), currency swaps, payment links, local bill payments, and peer-to-peer transfers.