What Difference can a 2 Million Seed Make in Africa's Travel Payment Market?

In a notable renowned move for Africa's fintech sphere, South African startup TurnStay has secured a $2 million in seed funding intended to transform payment processing for the Africa's travel and tourism industry. Led by First Circle Capital the round was announced on August 18, 2025 and backed by TLcom Capital, Enza Capital, Inclusive Ventures, CVVC and Equitable ventures. This investment support reflects the confidence of the investors and the alignment with TurnStay's vision. With already acquired ZAR250 million($13.5 million) in transactions, the company is set to change the course of the market which has been long affected by high costs and inefficiencies. TurnStay's ambitious goals place it in direct competition with global giants, regional fintechs and emerging players, all navigating a complex web of market dynamics.

Founded in 2021 by Alan Stern, a former Prodigy Finance executive and James Hedley, co-founder of Quicket, TurnStay maps out a strategic plan for eliminating or reducing the challenges faced by African travel businesses such as high cost of cross border payments. Its platform is characterized by a merchant-of-record model, seamless payment and stable coin based settlements to foster acceptance of travelers' home currencies while settling funds locally. This tends to reduce transactional fees by up to 70% and reduces delays in settlement from several weeks to days or even hours and boosts booking conversion by minimizing payment failures. "Our goal is to empower African tourism businesses to maximize more revenue and compete on a global level." Stern announced in a recent interview. Over $100 billion is being generated annually by Africa's travel and tourism industry and pumping in millions is a vital economic motivation. Local operators faces major hindrances ranging from transaction fees of 3.5-7% on international card payments and commissions of 15%-25% from global online travel agencies,(OTAs) like Booking.com and Expedia, TurnStay sets out to enable direct bookings and reducing reliance with OTAs by integrating seamlessly with existing booking engines. Following a pre-seed round of $300,000 in July 2024, TurnStay is scaling its operations with this $2M injection,with plans to expand beyond South Africa into Nigeria,Kenya and Egypt. With it's emergence into the travel fintech space, TurnStay positions itself among already existing contenders in the African travel market; each aiming to capture a share of the market, forecasted to reach $24.42 billion in revenue by 2024. Platforms like Booking.com and Expedia serve as key stakeholders dominating the market and leveraging their operations to secure lesser payment fees and control cash flows. Their high commission places TurnStay at an edge over them, however the global brand recognition still pose a significant hurdle. Convincing operators to prioritize cost savings over OTA visibility will be difficult. African payment providers like Flutterwave, Paystack and Peach payments which raised $31 million in 2023,offer robust cross- border payment solutions across industries. Their payment platforms coupled with their established networks and brand equity make them formidable competitors.As TurnStay focuses on travel coupled with stablecoin settlements, it gives it an edge in addressing currency instability and high transaction, however, aiming to match the infrastructure of these giants will require strategic decisions and partnerships.

Competitors like Nigeria's Wakanow and Kenya's Tripesa are also targeting tourism inefficiencies. Wakanow combines payment solutions with its OTA platform, while Tripesa offers financing and payment tools for small travel businesses. TurnStay's stablecoin-based approach and merchant-of-record model makes it unique but it must outpace these players in key markets like Nigeria,where tourism is growing rapidly.TurnStay's use of stablecoins aligns it with fintechs like Bitmana,which utilize digital currencies for across the border transactions. These platforms which focused on a more established financial structure could be an inspiration to similar travel-focused innovations. Regulatory uncertainties around cryptocurrencies in Africa demand careful navigation. Traditional banks categirize travel businesses as high risk, imposing steep fees and currency conversion costs. TurnStay's advancements disrupts this revenue stream, but progressive regulations in markets like Kenya and Nigeria,which support open finance, create better opportunities. Varying compliance requirements across Africa's 54 countries remain a hurdle.

Africa's tourism sector is thriving, driven by growing international interest in destinations like Cape Town and Nairobi. Fragmented markets,currency volatility and limited digital infrastructure create major barriers. TurnStay's integrations with mobile money platforms like M-Pesa, dominant in East Africa, cater for local preferences. Rural tourism hubs,however may require offline solutions to bridge the digital divide gap.TurnStay's success hinges on building trust among merchants,

Partnership with tourism boards and investments in cyber security will be crucial. Agnes Aistleitner Kisuule of First Circle Capital noted," TurnStay's focus on an underserved market creates a defensible moat." With strategic implementation,TurnStay could change the course of operation of African travel businesses, fostering economic growth and competiveness on a global level.