Early Wage Access provider, Paymenow, secures a capital injection of $22M to expand operations across Africa.
The early wage access sector is experiencing rapid growth globally, with Research Nester predicting that the market will expand significantly over the next two decades. According to their projections, the market, currently valued at $30.83 billion, is expected to grow to over $242.46 billion by 2034, representing an annual growth rate of 25.75%.
This growth trend is echoed in related markets such as the consumer credit market and the financial app market. The global consumer credit market is expected to grow from $11.73 billion in 2024 to $21.42 billion by 2034, with a compound annual growth rate (CAGR) of 6.2%. The financial app market, on the other hand, is projected to reach $12.47 billion by 2034, growing from $2.99 billion in 2024, with a CAGR of 15.35%.
One company at the forefront of this growth is Paymenow, a South African fintech firm that provides workers with the ability to access a portion of their earned wages before payday without incurring fees or interest. Deon Nobrega, CEO of Paymenow, views this service as a crucial step towards expanding financial inclusion for millions of workers, particularly in Southern Africa, where data indicates a severe household savings crisis.
The credit facility extended by Standard Bank aims to support Paymenow's regional expansion throughout Southern Africa. This partnership, launched in 2019 by Bryan Habana and Deon Nobrega, is a strategic move to address the financial needs of workers across the region. The funding from Standard Bank will enable Paymenow to expand its operations into more African regions where conventional financial services are inadequate.
Currently, Paymenow operates in South Africa, Namibia, and Zambia, handling over one million transactions each month in 2025 and supporting nearly 500,000 active users. The platform is designed to help employees facing urgent financial needs and reduce reliance on informal lenders or costly credit options.
Standard Bank believes that collaboration between traditional financial institutions and fintech firms can revolutionize the way employers and employees interact financially. By providing early wage access, Paymenow is addressing the financial needs of workers, helping them overcome urgent financial needs and reducing their reliance on informal lenders or costly credit options. This, in turn, could help improve the savings culture in regions like Southern Africa, where national savings account for only 15% of GDP, well below the global average of 28%.
The partnership between Standard Bank and Paymenow is a significant step towards empowering African fintechs and promoting financial inclusion. As the early wage access market continues to grow, companies like Paymenow are poised to play a crucial role in providing flexible financial tools to workers across the continent.
The strategic partnership between Standard Bank and Paymenow signifies a significant leap in empowering African fintech companies, contributing to financial inclusion. By offering early wage access, Paymenow addresses the financial needs of workers, fostering a culture of savings in regions like Southern Africa, where national savings account for only 15% of GDP. This growth in financial inclusion, spurred by fintech firms like Paymenow, is mirrored in related markets, such as the consumer credit market and the financial app market, expected to grow significantly over the next two decades.
