Paymenow, a South African fintech startup, aims to scale its services, widen customer base and deepen penetration.
Paymenow, a fast-growing wage access startup in South Africa, has secured a debt facility of USD 14 million from Rand Merchant Bank (RMB). The facility will help Paymenow scale up its services, widen its customer base, and deepen its market penetration across the country. The latest funding underscores the growing demand for flexible and affordable wage access solutions that provide financial relief to workers. Paymenow is the first earned wage access provider to launch in Namibia and Zambia.
Paymenow’s growth potential
The ZAR250 million (USD 14 million) debt facility comes off the back of Paymenow’s growth in the retail, mining, security, cleaning and facilities management industries. The startup currently services over 200,000 employees, with growth projections planned to double in the next year. The facility will help Paymenow expand its lending portfolio, enhance its technology platform, and strengthen its operational capacity.
Paymenow: Boosting financial inclusion in South Africa
Paymenow aims to help workers access their earned wages before payday, without the need for costly loans or credit checks. The startup’s innovative platform provides a solution for both employers and employees, enabling companies to improve their staff retention and productivity, while empowering workers to manage their finances and avoid debt traps. By promoting financial inclusion and stability, Paymenow seeks to contribute to South Africa’s economic growth and social development.
Expanding reach and impact
With the new facility, Paymenow plans to accelerate its growth and expand its footprint in South Africa. The startup aims to reach more workers, partner with more employers, and introduce new products and services that meet the evolving needs of its customers. Paymenow’s ultimate goal is to become the leading provider of wage access solutions in South Africa, and to make a positive difference in the lives of millions of workers.
Peach Payments, another South African firm, recently secured an investment of USD 31 million to further its growth and develop of a wide range of e-commerce and payment solutions.
Debt financing soared among African startups in 2022 due to limited access to venture capital.