Nigerian cross-border Crypto trading platform Bitmama, has acquired Nigerian payments startup Payday, to expand its Fintech footprint.
Bitmama’s acquisition of Payday is coming three months after the fintech startup was actively seeking buyers, having raised $3 million in a seed round led by Moniepoint.
Reports reveal that Bitmama CEO Ruth Iselema has extended an offer to PayDay investors, providing $1 million worth of equity in the cryptocurrency company at a valuation of $30 million.
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According to Iselema, she said,
“Favour reached out to me because we are building products crypto, one of those products is Changera, and it made sense to me. Bitmama, initially established as a cryptocurrency exchange, has transitioned its focus on global services, including remittance”.
Also speaking on the acquisition, PayDay CEO Favour Ori disclosed that the deal is a work in progress, noting that if the deal goes through, the result will be a strong team with much more efficiency.
As part of the potential agreement, Bitmama is poised to assume PayDay’s customer deposits and liabilities, consolidating its position in the Fintech space. The crypto exchange platform affirms that Payday’s brand will continue but will operate within Bitmama’s flagship cross-border payment product, Changera.
Changera is a social payment solution that allows non-crypto-savvy customers to use their money without limits, from anywhere in the world. It enables seamless and secure cross-border payments and remittances.
This strategic acquisition aims to address challenges faced by Payday, including dependence on third-party integrations, to enhance customer experience and service reliability. PayDay had previously encountered operational hurdles, such as industry-wide charge-back fraud, disruption in Mastercard services, and the departure of senior team members in July 2023.
For Payday’s 300,000-plus customers transitioning to Changera, immediate changes to fee structures or terms of service are not anticipated in the short term. However, as the integration progresses, customers can look forward to an expanded suite of services and potential new features, capitalizing on the synergies between Bitmama and Payday.
Bitmama’s acquisition of Payday is a strategic move for the company, as it aims to enhance FX transactions for businesses across Africa. Together, both companies will bring unique strengths and expertise to the table.
The crypto exchange started in 2017 as a P2P digital currency exchange. It quickly grew into a platform where individuals can trade and manage cryptocurrencies, and digital assets conveniently.
Today, Bitmama offers a trusted platform for cryptocurrency transactions. The startup is building a technology that will redefine the way people do financial transactions through blockchain technology.