Bitmama Acquires Nigerian Fintech Startup PayDay, in A Strategic Move to Explore The Fintech Market
Nigerian cross-border crypto trading platform Bitmama has acquired Fintech startup PayDay, to expand its Fintech footprint.
Bitmama’s acquisition of PayDay is happening after the Fintech startup three months ago, announced the plan to sell the company, after raising $3 million in a seed round led by Moniepoint.
Reports reveal that Bitmama CEO, Ruth Iselema has reportedly extended an offer to PayDay investors, providing $1 million worth of equity in the cryptocurrency company at a valuation of $30 million.
Speaking on the acquisition of payday, Iselema said,
“Favour reached out to me because we’re building products beyond crypto; one of those products is Changera, and it made sense to me. Bitmama, initially established as a cryptocurrency exchange, has transitioned its focus on global services, including remittance”.
PayDay CEO Favour Ori said the deal is a work in progress, noting that if the deal goes through, the result will be a strong team with much more efficiency.
Bitmama has affirmed that the PayDay brand will continue but will operate within the broader Changera umbrella, supported by its stablecoin infrastructure. This strategic integration aims to address challenges faced by PayDay, including dependence on third-party integrations, to enhance customer experience and service reliability.
Changera would absorb a number of PayDay’s key personnel across various departments, including marketing, customer service, and engineering. Bitmama, will assume Payday’s customer deposits and liabilities, according to a source familiar with the transaction.
For PayDay’s thousands of customers transitioning to Changera, immediate changes to fee structures or terms of service are not anticipated in the short term. However, as the integration progresses, customers can look forward to an expanded suite of services and potential new features, capitalizing on the synergies between both companies.
Bitmama which started as a P2P digital currency exchange in 2017, has evolved into a platform enabling convenient management and trade of cryptocurrencies and digital assets.
The crypto exchange’s strategic acquisition of payday aligns with its broader goal of redefining financial transactions through blockchain technology, also showcasing its dedication to providing cutting-edge solutions in the dynamic fintech ecosystem.
