Paymenow Raises $14M for its Groundbreaking EWA Platform in Order to Accelerate its Growth
Paymenow, a South African platform that provides earned wage access, has secured a ZAR250 million (US$14 million) debt facility from Rand Merchant Bank (RMB) to help fund its growth plans.
Paymenow is a financial wellness system that enables workers to receive a portion of their earned wages before their payroll cycle ends without the risk of high-interest loans. It was founded in 2019 and launched its services in March 2020. Besides that, the platform promotes savings and improves financial well-being. Stellenbosch is the company’s headquarters.
Deon Nobrega founded the company in collaboration with Bryan Habana, a Rugby World Cup winner; Willem van Zyl, the technical director; Gerry Potgieter, the head of software development; and Garth Mackintosh, the founding investor, to alleviate the challenges payday and microlenders face by providing affordable and immediate cash access in real-time.
“There is tremendous demand for Paymenow’s services in South Africa, which has 25 million active credit customers, of whom more than 10 million are behind on their payments. As such, the population of people looking for access to liquidity is enormous, and our ability to provide this liquidity without compromising financial health is having a remarkable positive impact,” said Nobrega. “
RMB is an indirect shareholder in Paymenow through its ownership of the DNI Group, and it has demonstrated an unwavering commitment to providing comprehensive support to the company. Paymenow has been able to expand its operations, innovate its offerings, and positively impact society as a result of this collaboration.
Nobrega stated, “Our objective is to ease the burden inflicted by unregulated short-term money lenders through affordable, real-time access to earned wages and to educate and assist South Africans in reaching their financial goals.”
According to a media release, Paymenow is a company “inspired by people and powered by technology.”
Having launched its services in Namibia and Zambia, Paymenow has become the leading provider of EWA (Employee Wallet Advance) and has gained significant momentum in both the public and private sectors. The company is now looking to expand its footprint in other strategically critical African markets, including Lesotho, Kenya, and Ghana Lesotho.