South African fintech startup Paymenow announced on Tuesday that it has secured an R400 million ($22.4 million) working capital facility from the Standard Bank Group to expand its earned wage access (EWA) services across Africa.
This funding marks one of the region’s most significant institutional investments in the EWA sector, providing Paymenow with the resources to scale its innovative financial solution beyond South Africa, Namibia, and Zambia.
Expanding access to on-demand salaries across Africa
Paymenow’s platform allows employees to access a portion of their already-earned wages before payday, offering a practical alternative to costly informal lending.
This service is particularly valuable in African markets where formal credit options are limited, and many workers face financial stress between pay cycles.
The new capital injection will enable Paymenow to reach more workers across the continent, helping them manage cash flow and avoid high-interest loans.
CEO and co-founder Deon Nobrega emphasised that the deal is more than financial support. “This partnership with Standard Bank is institutional validation of our model,” Nobrega said.
The collaboration also reflects a growing trend of traditional banks partnering with fintech companies to address structural financial challenges, rather than competing against them.
Institutional backing signals confidence in earned wage access
This latest funding round follows Paymenow’s previous $14 million debt raise from Rand Merchant Bank in 2023, which fueled its initial expansion. The Standard Bank facility significantly boosts the company’s capacity, signalling strong confidence from established financial institutions in the earned wage access model.
The deal’s sustainable finance structure also aligns with growing investor interest in fintech solutions that promote financial wellness and inclusion.
As Paymenow scales its services, it is positioned to disrupt traditional salary and credit systems in Africa, offering workers more control over their income.
The company’s growth highlights how fintech innovation is reshaping financial services on the continent, particularly for underserved populations.
Paymenow’s success story underscores the potential for fintech to bridge gaps in financial access and improve everyday lives for millions of African workers. With this new funding, the startup is set to accelerate its mission to make earned wage access a standard benefit for employees across Africa.