South African fintech startup Paymenow has secured a ZAR400 million (approximately US$22.5 million) working capital facility from Standard Bank to expand its earned wage access services across Africa. Founded in 2019 by Deon Nobrega and former rugby World Cup winner Bryan Habana, Paymenow enables employees to access a portion of their earned wages before payday, offering a flexible alternative to high-interest payday loans.
The new funding will support Paymenow’s expansion into additional African markets, including Namibia and Zambia, where access to affordable financial services is limited. Standard Bank’s support includes integration with its PayShap real-time payment solution and access to the OneHub platform, enhancing Paymenow’s ability to process fast, seamless payments.
In 2023, Paymenow raised a ZAR250 million (US$14 million) debt facility from Rand Merchant Bank. With the latest funding, the company aims to provide financial dignity and flexibility to millions of workers across Africa who currently struggle with monthly pay cycles and resort to expensive credit to bridge gaps in their cash flow.
Paymenow’s platform processes over one million transactions monthly and serves nearly 500,000 active users, up from just a few hundred at launch. The company’s mission is to reduce reliance on predatory lending and promote financial wellness among African workers.
This development underscores the growing recognition of earned wage access as a transformative financial product in Africa, with leading financial institutions investing in its growth.
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