Paymenow, a South African platform for accessing earned wages, has raised ZAR250 million (roughly $14 million) through a debt facility from Rand Merchant Bank (RMB) to support its expansion.
Founded in Stellenbosch in 2019, Paymenow launched with its first client in March of the following year. It is a platform for financial wellness that enables employees to access a portion of their accrued wages prior to the end of their payroll cycle without the risk of expensive loans. It also has the added advantage of helping employees save money and improve their financial wellness.
Paymenow, a company founded by Deon Nobrega, business development head Bryan Habana (a Rugby World Cup winner), technical director Willem van Zyl, head of software development Gerry Potgieter, and founding investor Garth Mackintosh, seeks to lessen the burden caused by payday and microlenders by providing accessible, affordable financing in real-time.
Paymenow’s expansion in the retail, mining, security, cleaning, and facilities management sectors led to the ZAR250 million ($14 million) debt facility. Over 200,000 employees are currently served by the startup, and growth is expected to double over the coming year.
“There is tremendous demand for Paymenow’s services in South Africa, which has 25 million active credit customers, of whom more than 10 million are behind on their payments. As such, the population of people looking for access to liquidity is enormous, and our ability to provide this liquidity without compromising financial health is having a remarkable positive impact,” said Nobrega. “Access to funding, such as through the agreement with RMB, is a gratifying acknowledgment of the strength of our model, and a key enabler of our future growth.”
Paymenow is the first provider of earned wage access to launch in Namibia and Zambia. It has gained rapid traction in both the private and public sectors. Paymenow plans to scale across additional strategic jurisdictions in Africa, including Lesotho, Ghana, and Kenya.
By holding shares in the DNI Group, RMB indirectly owns a stake in Paymenow. The company has stated that it looks forward to continuing its comprehensive partnership with Paymenow in order to help the startup expand, innovate, and have a positive impact on society through financial wellness and financial education.
