Ezeebit Secures $2.5 Million Seed Funding to Transform Crypto Payments in Africa
Ezeebit, a stablecoin and cryptocurrency payments infrastructure startup regulated by the FSCA, has successfully completed a $2.5 million (approximately R36.6 million) seed funding round. This significant investment aims to accelerate product development and boost merchant adoption across South Africa, Kenya, and Nigeria while expanding partnerships with banks, payment service providers (PSPs), and telecommunications companies.
Team Ezeebit, from left – Jonathan Katz, David Katz, Daniel Katz | image provided
Introduction to Ezeebit
Founded in 2023, Ezeebit enables merchants to accept cryptocurrency payments with the assurance of instant stablecoin settlement. Additionally, businesses benefit from next-business-day fiat payments, enhancing their cash flow and operational efficiency.
Transaction Milestones and Client Base
Since its inception, Ezeebit has processed over 30,000 transactions, accumulating millions of dollars in Gross Merchandise Volume (GMV). Its client portfolio boasts reputable local and international names, including iStore, Le Creuset, Scoin, Tintswalo Lodges, Amiri, and Diesel, showcasing its growing influence in the market.
Investment Details and Key Investors
The funding round was spearheaded by Raba Partnership, known for its investments in major companies such as Flutterwave, Stitch, Fuse, and BVNK. Founder Collective also participated, joined by strategic angel investors like Terry Angelos, Anton Katz, Nadir Khamissa, David De Picciotto, and Chris Harmse, signaling significant confidence in the value Ezeebit brings to the payment ecosystem.
The Need for Efficient Payment Solutions
According to Daniel Katz, CEO and co-founder of Ezeebit, many African merchants are constrained by slow and costly traditional payment channels. Meanwhile, consumer adoption of cryptocurrency for remittances and savings is on the rise. This funding is set to enhance Ezeebit’s stable settlement layer, bridging the gap between decentralized and traditional finance while ensuring compliance.
Benefits for Merchants
Ezeebit presents a cost-effective solution for merchants plagued by high transaction fees averaging 2-3% for card payments, combined with multi-day settlements and limited cross-border capabilities. In contrast, Ezeebit offers fees of 1% or less, along with instant stablecoin settlement and next-business-day fiat payments, alleviating financial pressures on businesses.
Commitment to Compliance and Security
As a regulated financial services and crypto asset service provider, Ezeebit prioritizes compliance. The platform incorporates anti-money laundering (AML) and know your customer (KYC) tools, preparing for regulatory travel rules. Merchants can accept various cryptocurrencies including Bitcoin, USDT, USDC, and ETH through Android ePOS devices, e-commerce plugins, or APIs. Furthermore, Ezeebit operates a wallet-agnostic approach, facilitating payments from custodial, DeFi, or international wallets.
Investor Insights and Future Prospects
Supporters of this funding round emphasize the prohibitive costs associated with remittances in Africa, highlighting the pressing need for compliant crypto infrastructure. This investment aims to create a smoother, frictionless experience for consumers and merchants alike, positioning Ezeebit as a key player in the evolving landscape of digital payments within the continent.