Ezeebit Secures $2.5 Million Seed Round to Transform Cryptocurrency Payments in Africa
Ezeebit, a promising startup focused on cryptocurrency payments and regulated by the FSCA, has successfully raised $2.5 million (or approximately R36.6 million) in a seed funding round. This capital will accelerate the company’s product development and increase merchant adoption across South Africa, Kenya, and Nigeria, while also enabling an expansion of partnerships with banks, payment service providers (PSPs), and telecommunications companies.
Innovative Payment Solutions for Merchants
Founded in 2023, Ezeebit offers merchants a streamlined way to accept cryptocurrency payments. With features like immediate stablecoin settlement and fiat payments the next business day, Ezeebit is positioned to meet the evolving needs of both local and international businesses.
Transaction Growth and Notable Clients
The startup has already processed over 30,000 transactions, translating to millions in gross merchandise value (GMV). Notable clients like iStore, Le Creuset, Scoin, Tintswalo Lodges, Amiri, and Diesel highlight Ezeebit’s increasing footprint in the market.
Backing from Key Investors
The seed round was spearheaded by Raba Partnership, a firm with a strong portfolio that includes investments in Flutterwave, Stitch, Fuse, and BVNK. Additional support came from Founder Collective and several strategic angel investors, such as Terry Angelos, Anton Katz, Nadir Khamissa, David De Picciotto, and Chris Harmse.
Meeting the Demand for Fast and Cost-Effective Payments
CEO and co-founder Daniel Katz noted that African merchants are often burdened by slow and costly payment channels. With consumers increasingly turning to cryptocurrency for remittances and savings, Ezeebit aims to bridge this gap. The investment will enhance Ezeebit’s stable settlement infrastructure, ensuring a compliant connection between decentralized and traditional finance.
Reducing Fees and Expediting Transactions
Merchants currently face hefty fees of around 2-3% for card payments, coupled with multi-day settlements and limited cross-border options. In contrast, Ezeebit offers competitive fees of 1% or less, alongside instant stablecoin settlements and next-day fiat payments. This has resulted in a growing demand for Ezeebit’s services, especially amidst inflationary pressures and low credit card penetration in some markets.
Commitment to Compliance and Security
Ezeebit is a regulated financial services and crypto asset service provider, adhering to guidelines set by the FSCA. The platform is equipped with essential tools for anti-money laundering (AML) and Know Your Customer (KYC) requirements, ensuring comprehensive compliance. Merchants can accept various cryptocurrencies, including Bitcoin, USDT, USDC, and ETH, through Android ePOS devices, e-commerce plugins, and APIs. Furthermore, Ezeebit is wallet-agnostic, accepting payments from custodial, DeFi, or foreign wallets.
Investor Perspectives on the Future of Crypto Payments
Investors backing the seed round have emphasized the high costs associated with remittance transactions in Africa, pointing to a pressing need for compliant crypto infrastructure. Ezeebit not only seeks to reduce friction for consumers but also aims to make business transactions smoother for merchants, paving the way for the future of cryptocurrency in Africa.
With its innovative approach and robust backing, Ezeebit stands poised to lead the charge in transforming payment systems across the continent.