Standard Bank Provides ZAR400 Million Loan to Paymenow for Wage Advance Expansion in Africa
Paymenow Secures Major Investment to Expand Earned Wage Access Services Across Africa
Paymenow, a fintech startup specializing in Earned Wage Access (EWA), has secured a significant investment of ZAR400 million ($22.5 million) from Standard Bank. This funding will be used to aggressively expand the company's services across Africa, with a focus on deepening its presence in South Africa, Namibia, and Zambia, and targeting new markets with limited access to affordable financial solutions.
The investment will enable Paymenow to integrate with Standard Bank's advanced real-time payment system, PayShap, and the OneHub platform. This integration will enhance the company's ability to deliver fast, seamless payments to workers, addressing the financial needs of millions who are often reliant on costly credit and payday lenders due to rigid pay cycles and limited financial inclusion in these regions.
Key points of the expansion plans include scaling operations and customer base in South Africa, Namibia, and Zambia. Paymenow is also exploring new markets where a lack of formal financial services exists. The platform promotes financial flexibility and better financial wellness among employees.
The partnership between Paymenow and Standard Bank will potentially protect individuals from predatory lenders. Earned Wage Access (EWA) directly addresses the disconnect between monthly pay cycles and daily living expenses, offering a crucial alternative to high-interest payday loans.
Founded in 2019 by Deon Nobrega and rugby world cup champion Bryan Habana, Paymenow aims to broaden financial flexibility and dignity for workers across the continent. The startup has already secured a ZAR250 million ($14 million) debt facility from Rand Merchant Bank in 2023, in addition to the current ZAR400 million ($22.5 million) from Standard Bank.
Rugby World Cup champion Bryan Habana has been a key driver in advocating for employee-centric benefits like Earned Wage Access (EWA). The latest funding round indicates that the financial industry is recognizing EWA as a powerful tool for empowering workers and reshaping payroll practices throughout Africa.
This technological boost will allow Paymenow to process payments more quickly and efficiently, contributing to the transformation of wage access across Africa. The partnership between Paymenow and Standard Bank will undoubtedly revolutionize how employees access their wages, providing a brighter financial future for millions across the continent.
- The fintech startup, Paymenow, with its focus on the finance and investing industry, aims to reshape payroll practices by leveraging Earned Wage Access (EWA) in collaboration with banking institutions like Standard Bank, targeting new business opportunities in Africa.
- The integration of Paymenow with Standard Bank's advanced payment systems will offer a crucial alternative to high-interest payday lenders, empowering workers across Africa, and potentially protecting them from predatory lenders.
- As part of its expansion plans, Paymenow will utilize the investment from Standard Bank to enhance its services in South Africa, Namibia, and Zambia, and venture into new markets with limited access to affordable financial solutions, promoting financial flexibility and wellness among employees.
