SA earned wage access startup Paymenow raised $22.5 M working capital facility
A ZAR400 million (US $22.5 million) working capital facility has been obtained by South African earned wage access startup Paymenow from Standard Bank to support the company’s expansion of its cutting-edge employee financial wellness solutions throughout Africa.
Founded in 2019, the Stellenbosch-based Paymenow launched with its first client in March 2020. With the added benefit of fostering savings and enhancing financial wellness, this platform for financial wellness enables workers to access a portion of their accumulated wages prior to the conclusion of their payroll cycle without the risk of expensive loans.
Deon Nobrega, Bryan Habana (a Rugby World Cup winner), Willem van Zyl, Gerry Potgieter, the head of software development, and founder investor Garth Mackintosh founded Paymenow with the goal of reducing the burden caused by payday and microlenders by providing affordable, real-time access to cash.
In 2023, Paymenow raised a ZAR250 million (US$14 million) debt facility through Rand Merchant Bank (RMB). With Standard Bank, the company has now obtained additional debt access through a ZAR400 million working capital facility.
Building on Paymenow’s current footprint in South Africa, Namibia, and Zambia, the facility will help the company achieve its ambitious expansion plans across key African markets. According to Paymenow, it has found “significant opportunities” in other jurisdictions where working populations are at risk of predatory lending and never-ending debt cycles because traditional financial services have not been able to meet their needs.
Along with onboarding Paymenow onto Standard Bank’s OneHub platform, the bank has also enabled Paymenow with PayShap, a faster payment solution that guarantees the startup is competitive and ahead of the curve with the constantly changing payments landscape.
“This substantial facility from Standard Bank Group demonstrates that leading financial institutions recognise the transformative potential of earned wage access and are willing to invest significantly in its growth. The funding will enable us to accelerate our expansion across Africa, bringing financial dignity and flexibility to millions more workers who currently struggle with the constraints of monthly pay cycles and resort to expensive credit to bridge gaps in their cash flow,” said Nobrega.
