Developing fintech solutions for African freelancers

PayD, an African fintech start-up focused on facilitating cross-border payments for freelancers, has recently secured a Ksh4 million grant at a start-up competition. This achievement opens doors to vibrant fintech markets for PayD, as they aim to address the challenges faced by freelancers in Africa when it comes to transacting money from one part of the continent to another. Benaiah Wepundi, the founder of PayD, spoke to CNBC Africa about the impact of their recent funding and how they plan to navigate the regulatory landscape in Africa. One of the key focuses for PayD is to provide payment solutions and financial management services tailored to the diverse and growing gig work market in Africa. With the grant, they plan to invest in market research, identifying opportunities, and expanding their platform to cater to the different types of gig workers in the region. By leveraging data analytics, PayD aims to provide freelancers with accurate financial analysis and assistance, transforming their freelance ventures into sustainable sources of income. Furthermore, PayD is exploring partnerships with traditional financial institutions to extend services such as savings, investments, and credit facilities to freelancers who are often overlooked by traditional lenders. By aggregating income data from freelancers on their platform, PayD can streamline the process of credit scoring and provide access to financial services that were previously inaccessible to gig workers. Navigating through regulatory challenges is crucial for PayD, especially when it comes to facilitating cross-border payments. By working closely with licensed payment service providers and implementing internal measures to prevent money laundering and fraud, PayD aims to ensure a secure and compliant platform for their users. The freelance market in Africa is rapidly growing, with over 86 million freelancers on the continent currently. According to projections by the World Bank, this number is expected to nearly double by 2030. The affordability of African freelancers compared to global rates, coupled with the increasing adoption of technology among the youth population, makes Africa an attractive market for gig work. Initiatives like the AGIRA program in Kenya are further driving the transition of the young generation into the digital economy, fueling the demand for gig work in the region. With the funding secured and a clear roadmap for growth and expansion, PayD is well-positioned to revolutionize cross-border payments for African freelancers and make a significant impact on the gig work market in the region.