Payday plans to expand to the UK and Canada and scale its borderless payments platform with new investment.
Payday, a neobank based in Africa, has raised $3 million in seed funding from investors to expand its borderless payment platform for remote workers and digital professionals.
New investment to drive expansion plans
Payday plans to use the $3 million raised in seed funding to secure operational licensing in the UK and Canada. The neobank also intends to build out its operations in the UK, where it has recently incorporated. The funding will also support talent acquisition, as Payday’s team is set to grow from 35 to 50 employees.
According to the company, it has over 350,000 users, with 4,000 new users per day. To date, it has raised USD 5.1 million and makes 40,000 transactions per day.
Payday allows users to receive and send payments to and from anywhere in the world. Customers use a wallet that can accept international transfers and a virtual card to spend anywhere they wish.
Payday – a borderless payment platform
Payday aims to empower individuals and businesses with convenient and secure payment solutions that are accessible from anywhere in the world. The neobank offers virtual Visa and Mastercards that can be generated through its mobile app, allowing users to send and receive money in major currencies, including USD, GBP, and EUR.
A significant milestone
The seed funding represents a significant milestone for Payday, bringing its total investment to date to USD 5.1 million. The oversubscribed round saw participation from Moniepoint Inc., HoaQ, DFS Lab’s Stellar Africa Fund, Ingressive Capital Fund II, and angel investors such as Dare Okoudjou, founder and CEO of MFS Africa, and Tola Onayemi, CEO of Norabase.
Favour Ori, the CEO and founder of Payday, expressed his excitement about the new investment, stating that it will allow the neobank to scale its platform and reach more Africans around the world. Ori also noted that Payday’s goal remains the same: to make it easy and accessible for anyone to access their payments when on the continent.
South African financial services provider Fin aims to become Africa’s first credit-led neobank and recently acquired housing loan provider Thuthukani. Last year, neobank Be Mobile Africa launched in South Africa with ambitions to serve the underbanked.