Bitmama Strengthens Cross-Border Payments with Acquisition of Payday

In a major move in Nigeria’s fintech scene, Bitmama Inc., a blockchain payments platform, has officially acquired Payday, a virtual card service provider. This news follows Payday’s announcement of a $3 million seed round just nine months ago and the confirmation of its exploration of sale options three months ago.

Bitmama’s cross-border payments product, Changera, played a key role in facilitating this acquisition. Changera is set to strengthen its blockchain payment platform by taking over 100% of Payday’s customer base.

According to Techpoint Africa’s report, sources close to the matter mentioned that acquisition talks began a few weeks ago and are around 85% complete. Another source suggests that it’s an all-stock deal valued at millions of dollars.

Launched in 2021, Changera will absorb several key personnel from Payday, spanning departments like marketing, customer service, and engineering.

The integration process has already started, with some Payday employees transitioning to Changera. The fate of Payday’s CEO, Favour Ori, within Bitmama’s team remains uncertain.

For Payday’s 300,000 customers now under Changera, there shouldn’t be noticeable changes.

Payday’s brand will persist but operate under the broader Changera umbrella, backed by its stablecoin infrastructure.

This integration aims to address challenges Payday faced due to third-party dependencies, potentially improving customer experience and service reliability.

Bitmama’s management assures that Payday’s brand will continue with no immediate changes to fee structures or terms of service.

However, as integration progresses, customers can expect an expanded range of services and possibly new features leveraging both Bitmama and Payday’s strengths.

Looking ahead, Bitmama has ambitious plans post-acquisition, focusing on developing a new solution set to enhance FX transactions for African businesses.

Expected to launch in Q1 2024, this solution aims to facilitate smoother B2B cross-border financial interactions, addressing a critical market need.