Moniepoint leads Payday's $3mn seed round

Payday, a tech start-up aimed at providing frictionless and borderless payments for African remote workers, freelancers, and digital professionals, has successfully secured a $3 million pre-seed funding round. This funding round is poised to drive the company's expansion and adoption in the African market. Favour Ori, the CEO and Founder of Payday, discussed the details of the funding and the future plans for the company in an exclusive interview with CNBC Africa. Favour Ori shared insights on the key elements of the pre-seed funding round, highlighting that the $3 million investment was led by Moniepoint, with additional contributions from previous investors such as Techstars, Ingressive Capital, and AngelTorch. The primary focus for deployment of the funds includes expanding into new countries and obtaining licensing in Canada and the UK. Payday aims to streamline payment processes for African professionals through the issuance of global accounts, enabling them to receive payments, make international transactions, and access financial services efficiently. Discussing the evolution of Payday's business model, Favour Ori explained that the company initially operated as a platform similar to PayPal, facilitating global and intra-Africa payments. However, after refining their strategy, Payday transitioned into a neo-bank that offers real USD and GBP accounts, along with other currency options. By providing users with global accounts, Payday empowers African professionals to seamlessly manage their finances, receive payments from international clients, and access digital banking services on-the-go. In order to address payment challenges faced by customers in over 130 countries, Payday is focused on continuous improvement based on user feedback and transaction data. While the platform offers multiple currencies and features, the company acknowledges the need for user education to enhance customer experience and ensure smooth navigation of the app. By investing in user education and support, Payday aims to bridge the gap between customer expectations and platform functionality. Looking ahead, Favour Ori emphasized the significance of talent acquisition and retention, stating that a portion of the seed funding will be allocated towards bolstering the company's talent pool. Payday has embraced a remote working model, enabling employees to work from various locations globally. The company prioritizes productivity and communication, leveraging virtual meetings and occasional meetups to foster collaboration and teamwork among its distributed workforce. As the African market continues to witness a surge in digital banking services and innovative fintech solutions, Payday remains committed to revolutionizing the payment landscape for African professionals. With a focus on simplifying cross-border transactions, empowering remote workers, and enhancing financial inclusion, Payday's strategic vision aligns with the evolving needs of the digital workforce in Africa. The company's agile approach to payment solutions and dedication to user-centric innovation position it as a key player in Africa's growing fintech ecosystem.