Nigerian fintech startup, Payday, has recently undergone acquisition by the prominent blockchain payments startup, Bitmama. The acquisition transaction was executed through Bitmama’s flagship cross-border payments product, Changera, as disclosed in a document accessed by Techmoonshot.
This development comes on the heels of a September report by the tech news platform, TechCabal, revealing Payday’s active negotiations with potential buyers. This move transpired six months after Payday secured $3 million in a seed funding round, led by Moniepoint. Payday also raised $2 million in a pre-seed round last year which brings its total funding to $5 million. It’s noteworthy that a preceding report, six months prior, had suggested discussions between Moniepoint, another Nigerian fintech company, and Payday regarding a potential acquisition. However, the speculated deal with Moniepoint did not materialize, with sources citing a lack of enthusiasm from Moniepoint’s board.
Established in 2017 by Ruth Iselema, Bitmama employs stablecoin infrastructure to address prevalent market inefficiencies, including challenges related to dollar shortages, currency devaluation, and the high costs associated with remittance. In September of the previous year, Bitmama disclosed a successful pre-seed funding round, amassing a total of $2 million. This acquisition represents a significant development in the dynamic fintech landscape, signaling potential synergies and strategic advancements for the entities involved.
“We are diligently working behind the scenes to implement significant technological enhancements and ensure highly efficient customer service.”
The source affirmed
While the specific details of Bitmama’s acquisition of Payday were not disclosed, a reliable anonymous source familiar with the situation informed Techmoonshot that the Changera team, associated with Bitmama, has initiated efforts on the backend to address the previous challenges raised by users of the struggling fintech platform. This proactive approach suggests a commitment to resolving issues and enhancing the user experience following the acquisition.
A few months earlier, there had been a released report outlining a series of customer complaints related to Payday. The issues included instances where users fell victim to scams while using the platform, resulting in unauthorized deductions from their accounts and discrepancies in the displayed funded amounts.
According to the same source, the Payday team has played a crucial role in facilitating the transition and resolution process under Bitmama. The source affirmed, “We are diligently working behind the scenes to implement significant technological enhancements and ensure highly efficient customer service.” This proactive approach suggests a commitment to addressing past challenges and improving overall platform performance.
What this acquisition means for Bitmama
Established in 2021, Changera stands as a social payment solution designed to empower users who may not be well-versed in cryptocurrency, providing them with the freedom to utilize their money globally. The platform facilitates smooth and secure cross-border payments and remittances.
Currently, Changera extends its services through MasterCard and VISA-issued virtual and physical dollar cards. The virtual card option grants users monthly spending limits of up to $10,000, applicable to both local and international online/offline payment channels in Nigeria, Ghana, and Kenya. This diverse range of offerings positions Changera as a versatile and accessible financial solution for users across different regions.
The startup had previously revealed a strategic collaboration with MoneyGram four months ago. This partnership aimed to enable both cash-in services in Canada, Senegal, Uganda, and Kenya, as well as cash-out services utilizing Circle’s stablecoin, USDC, through the Stellar blockchain network. These services were made available at participating MoneyGram locations spanning over 180 countries.
With the recent acquisition of Payday, a fintech startup specializing in providing virtual dollar cards to users across the continent, Bitmama gains access to Payday’s extensive user base of 678,000 individuals (as per the last public count by CEO Favour Ori). Moreover, this acquisition also grants Bitmama access to valuable user data, offering a strategic advantage by potentially reducing significant expansion costs.
