South African fintech TurnStay has secured $2 million in seed funding to address payment inefficiencies plaguing Africa’s travel industry. The round, led by First Circle Capital, attracted participation from prominent investors including TLCom Capital, Enza Capital, Incisive Ventures, CVVC, and Equitable Ventures.
The company targets a persistent challenge for African travel operators: exorbitant transaction fees and settlement delays that erode profit margins. Traditional payment processing in Africa can exceed 7% per transaction, significantly disadvantaging local operators competing against international booking platforms.
Addressing Payment Infrastructure Gaps
TurnStay employs a merchant-of-record model combined with payment orchestration to process card payments in travelers’ home countries while settling funds locally through stablecoins. This approach delivers cost reductions of up to 70% while accelerating settlement times.
The platform integrates seamlessly with existing booking engines and property management systems, enabling travel operators to adopt the solution without workflow disruptions. By providing an alternative to global online travel agencies that typically impose high commissions, TurnStay facilitates more direct bookings and improved unit economics for local operators.
“The combination of reduced payment processing fees and faster settlement times creates a compelling value proposition for our clients” ~ co-founder and COO James Hedley.
Experienced Leadership Team
The company was founded by fintech veterans Alon Stern, formerly of Prodigy Finance, and James Hedley, co-founder of Quicket, which was acquired by Ticketmaster. Their combined expertise in financial technology and event management provides valuable insights into payment processing challenges across different sectors.
Since completing a $300,000 pre-seed round in July 2024 from DFS Lab and DCG, TurnStay has processed over R250 million in transactions and established partnerships with industry leaders.
“This seed funding represents a major milestone in our mission to make global payment infrastructure accessible to African travel businesses” ~ CEO, Alon Stern.
Market Opportunity and Industry Impact
Africa’s travel and tourism sector employs more than six million people and processes over $100 billion annually, representing a substantial economic driver across the continent. However, high payment processing costs have historically hindered African operators’ competitiveness against international booking platforms.
TurnStay’s infrastructure aims to level the playing field by providing access to cost-efficient payment processing similar to what global travel companies utilize. The solution addresses systemic issues including failed international payments and cash flow disruptions that have long challenged regional operators.
“TurnStay is redefining travel bookings for Africa and other emerging markets” ~ Agnes Aistleitner Kisuule, partner at First Circle Capital.
Expansion Plans and Future Development
The fresh capital will fuel TurnStay’s expansion across key African markets while supporting continued development of its payment technology. The company plans to broaden its client base and enhance its fintech infrastructure to meet growing demand for seamless international payment solutions in the travel sector.
With tourism to emerging markets experiencing steady growth and Africa attracting increased international travel, demand for more efficient payment infrastructure continues to rise. TurnStay’s timing aligns with this trend, offering tools specifically designed to address regional payment challenges.
The funding round reflects investor confidence in TurnStay’s approach to solving entrenched payment problems that have long affected African travel operators. As the company scales its operations, its success could influence how other fintech startups approach cross-border payment solutions in emerging markets.