Zeepay: Pioneering Digital Payments in Africa and the Caribbean
In a significant move for the fintech landscape, Ghanaian startup Zeepay has successfully raised a new round of equity investment aimed at bolstering its expansion efforts across Africa and the Caribbean. Established in 2014, Zeepay has carved out a niche in the digital payments sector, focusing on creating seamless connections between various digital assets. These include mobile money wallets, bank accounts, cards, ATMs, and digital tokens, all designed to facilitate international money transfers, payments, subscriptions, and even refugee payments.
A Global Footprint
Zeepay’s operations span over 20 countries worldwide, showcasing its commitment to enhancing financial inclusivity. The startup specializes in the instant settlement of remittances into mobile money wallets, particularly in Africa and the Caribbean. This service is crucial for many individuals who rely on remittances from family members abroad. In the past year alone, Zeepay has settled more than 10 million remittance transactions, amounting to over $3 billion in value. This impressive volume underscores the startup’s pivotal role in the financial ecosystem, especially for those in regions where traditional banking services may be limited.
Recent Funding and Future Plans
Having previously raised $7.9 million in a Series A funding round in June 2021, Zeepay has now secured additional investment from a consortium of pan-African investment firms, including Africa50, Oikocredit, Injaro, Verdant Capital Hybrid Fund, and I&P. While the specific amount and stage of this latest funding round remain undisclosed, the capital will be instrumental in supporting Zeepay’s ambitious plans for geographical expansion and enhancing its service offerings to International Money Transfer Operators (IMTOs) as well as the senders and recipients of remittances.
Andrew Takyi-Appiah, the founder and CEO of Zeepay, expressed gratitude to all stakeholders involved in this funding round. He emphasized that the investment will significantly aid the company’s ongoing expansion efforts across Africa. “Our short to medium plan is to expand our mobile money reach into a minimum of 10 countries within the next two years, leveraging remittances in partnership with MoneyGram,” he stated, highlighting the strategic partnerships that will facilitate this growth.
The Importance of Remittances
The role of remittances in African economies cannot be overstated. For many countries with large diaspora populations, foreign currency inflows from remittances serve as a vital economic lifeline, especially in challenging economic climates. Raza Hasnani, managing director and head of infrastructure investments at Africa50, acknowledged Zeepay’s significant contribution to this landscape. He noted that the startup provides a local, affordable, secure, and convenient money transfer solution, enabling the industrious African diaspora to support their loved ones back home.
Building a Robust Digital Payments Infrastructure
As Zeepay continues to expand its services, it aims to deepen its offerings to IMTOs and enhance the overall user experience for both senders and recipients of remittances. The startup’s focus on building a robust digital payments infrastructure is not just about facilitating transactions; it’s about fostering financial inclusion and empowering individuals across the continent and beyond.
By leveraging technology and strategic partnerships, Zeepay is positioning itself as a leader in the digital payments space, paving the way for a more connected and financially inclusive future. The company’s ongoing efforts to expand its reach and improve its services reflect a broader trend in the fintech industry, where innovation is key to addressing the unique challenges faced by underserved populations.