Tunisian fintech startup Paymee has gotten 6-figure funding in US dollars which it aims to use to advance its enterprise reach and develop its product.
The startup which was founded in 2020 by Marwen Amamou is bent on delivering new payment technologies which will aid merchants to move up their income with the introduction of digital payments. The startup allows buyers to use cards to make payments and it has made its technology easily integrated into any website or mobile application.
The startup started becoming popular in 2021 and after it received funding from P1 Ventures it planned to further its expansionist policy and advance its operation to other countries. The company has stated that it intends to use the investment to expand its operations across Tunisia.
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This is What Paymee Founder Has To Say
“This raise will support our ambition to develop the product and attract new talents. We are already known for the efficiency and simplicity of our payment solutions and now we want to become the market reference in Tunisia. Addressing our client needs and simplifying their operations is at the core of our research and development efforts.
Also, General Partner at P1 Ventures, Mikael Hajjar, said:
“Marwen is also a highly ambitious and resilient entrepreneur who continues to develop new features such as the QR Codes, which is a great alternative to cash on delivery for logistic clients such as Aramex”.
The Future of Payment in Africa?
The first transaction between humans took place over 200,000 years ago, and there have been drastic changes in how we pay for goods and services.
At first, we used the bartering method which involved the swapping of one commodity for another but this wasn’t successful because of the scarcity of some goods, hence the need to move to a more convenient mode of transaction.
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We moved on to the method of using money to purchase goods, this method is similar to the bartering method but this involved using a currency to swap for commodities and it is proven to be more efficient and convenient.
Though trading physically with money is now outdated in other continents such as Europe, America, and Asia they use the internet to perform transactions as it is more convenient and less stressful.
In some countries in Africa, the online payment method is thriving but only 38% of Africa’s population has access to the internet this is proven to be a major obstacle. Most countries in Africa don’t have access to internet service hence they have to perform transactions physically which may be a burden to the sick, pregnant, or old aged.
Though some countries have access to the internet, traders don’t trust the online method of transaction because they can be scammed of their hard-earned money by fraudsters which makes them insist on the physical mode of payment.
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Startups like Paymee and others should get the required funding to help alleviate this obstacle and provide better financial services to their customers.
Advantages and Disadvantages of Credit Card payment in Africa?
As well all know, Paymee is out to improve Africa’s mode of payment transactions by introducing payments using credit cards. Credit cards have been known to be easy to operate, less stressful, and convenient for the populace but may become debt traps if not used properly. Here are the cons and pros of using a Credit card for your transaction:
Advantages of Credit Card Payment
1) It is very convenient:
It is not a must for you to have money in your account before you use the card to perform transactions, instead, you can use a debit card which will help you not to acquire debt which will lead to a high-interest rate.
Note: Check your account balance before any transaction to be sure that you can afford what you are paying for.
2) Keeps record of transactions:
While using the physical method of payment you either have to rack your brain or get a jotter to remember your transactions which can be very stressful and uncomfortable but while using Credit cards, you would be entitled to a monthly and annual record of transactions carried out which can be of help when doing tasks.
3)Build good credit history:
People who use credit cards would know that if you have a good credit history, there is no need for credit facilities to do immense investigations on you to determine if you are eligible for a loan but y just checking your credit history and see that you have a good rating, which is gotten by paying off purchases on time, you are eligible for a loan.
4) Purchase Protection:
Since there is the availability of transactions while using credit cards if there is any dispute concerning a particular product it is easy to do so within a short amount of time.
Disadvantages of Credit Card Payment
1)Temptation:
Since one can purchase without having the required funds and the convenience it provides, people tend to overspend more than what they budgeted for.
2) Interest charges on goods:
If you lack the funds to purchase some items at that particular time you can pay it off later but there will be some interest added to it which means you may end up paying more than the actual price of that item/commodity.
3) Mandatory fees:
Some fees come with owning a credit card which will prompt the individual to spend more on fees than he/she earns in discounts or cash back so make sure you earn more in benefits than you spend on fees.
4) Monthly scrutiny:
Sometimes scammers who have access to your credit cards may use them for other purposes but to curb this you must ensure you check your transactions monthly to make sure there aren’t any signs of fraudulent use of your card.