South Africa-based fintech startup Ezeebit has secured US$2.05 million in seed funding to accelerate the development of its stablecoin and cryptocurrency payment infrastructure and deepen merchant adoption across South Africa, Kenya, and Nigeria.
Founded in 2023 and regulated by South Africa’s Financial Sector Conduct Authority (FSCA), Ezeebit is positioning itself at the intersection of decentralised finance and traditional payment systems, enabling businesses to accept crypto payments while receiving fast, local fiat payouts.
The funding round, led by Raba Partnership and supported by Founder Collective alongside prominent fintech and payments veterans, underscores growing investor confidence in Africa’s crypto payment rails.
According to Ezeebit’s CEO and co-founder, Daniel Katz, African merchants remain constrained by “slow, expensive payment rails,” even as crypto adoption for savings and remittances continues to rise.
“We bridge this gap by connecting decentralised and traditional finance with a compliant stablecoin settlement layer,” Katz said, adding that the new capital will allow Ezeebit to provide “vital infrastructure, allowing millions to participate fully in the global digital economy.”
What You Should Know About Ezeebit
Ezeebit is a cryptocurrency and stablecoin payment infrastructure company that allows merchants to accept crypto payments without directly holding or managing volatile digital assets.
The company operates a compliant settlement layer that instantly converts crypto payments into stablecoins and facilitates next-business-day payouts in local fiat currencies.
Since launching, Ezeebit has processed over 30,000 transactions, generating millions of dollars in gross merchandise value, and has onboarded high-profile clients including iStore, Le Creuset, Tintswalo Lodges, Amiri, Diesel, and Scoin.
Its regulatory status under South Africa’s FSCA gives it a level of credibility and compliance that remains scarce in Africa’s fragmented crypto payments ecosystem.
The Problem Ezeebit Is Solving
Across Africa, merchants face slow settlement times, high transaction fees, and limited cross-border payment options, while consumers increasingly hold crypto assets for remittances and savings but lack reliable ways to spend them in everyday commerce.
Traditional payment systems often fail to meet the needs of businesses operating in digitally connected but financially constrained markets.
As Katz explains, “African merchants are tied to slow, expensive payment rails, while consumers increasingly hold crypto for remittances and savings but lack a safe way to spend it.”
This disconnect has created a significant gap between crypto ownership and real-world usability, one that Ezeebit aims to close.
How the Ezeebit Startup Operates and Who It Serves
Ezeebit acts as a bridge between crypto users and mainstream businesses. Customers can pay using cryptocurrency, while merchants receive their funds in local currency, typically by the next business day.
This removes exposure to crypto price volatility and operational complexity for merchants, making adoption frictionless.
The platform serves a diverse client base, ranging from global retail brands and luxury hospitality businesses to local merchants, all seeking faster, cheaper, and more reliable payment infrastructure.
By integrating with banks, payment service providers (PSPs), and telecom companies, Ezeebit embeds itself into existing financial ecosystems rather than attempting to replace them.
Market Size and Ezeebit’s Expansion Plans with the New Funding
The US$2.05 million seed round was led by Raba Partnership, an early backer of fintech leaders such as Flutterwave, Stitch, Fuse, and BVNK, with participation from Founder Collective, known for early investments in Uber, Airtable, WHOOP, and The Trade Desk.
Strategic angel investors include former executives from Visa, Revolut, and Talos, bringing deep payments and infrastructure expertise.
Ezeebit plans to deploy the capital to accelerate product development, expand merchant onboarding in South Africa, Kenya, and Nigeria, and strengthen partnerships with banks, PSPs, and telco.
This move aims at scaling transaction volumes and deepening market penetration across Africa’s most active digital economies.
Why Stablecoins Are Central to Ezeebit’s Strategy
Stablecoins play a critical role in Ezeebit’s model because they combine the speed and efficiency of crypto with the price stability of traditional currencies.
Katz describes stablecoins as “the logical next step,” particularly in a region where Sub-Saharan Africa remains the most expensive place in the world to receive remittances, with average costs reaching 8.78 per cent.
Crypto rails, powered by stablecoins, offer a faster and cheaper alternative for cross-border payments.
Once consumers receive funds in crypto, Katz notes, “they are eager to spend it on goods and services, creating a reinforcing growth loop” that benefits both merchants and the broader economy.
Why This Matters for Africa’s Business Growth
Ezeebit’s expansion reflects a broader shift in Africa’s digital economy, where mobile money adoption has already familiarised hundreds of millions of people with cashless payments through QR codes and account-to-account transfers.
Building on this foundation, stablecoin-powered payments could unlock new efficiencies for businesses, reduce remittance costs, and improve financial inclusion.
David Frankel, co-founder and managing partner at Founder Collective, described the moment as “extraordinary,” noting that “millions of people hold crypto but can’t spend it; merchants need faster, cheaper rails, but legacy systems keep them locked out.”
By building infrastructure that connects modern financial technology with local market realities, Ezeebit is not just enabling payments, it is laying the groundwork for a more inclusive, competitive, and globally connected African business ecosystem.
Talking Points
Ezeebit’s funding round and expansion strategy highlight both the promise and the unresolved tensions within Africa’s evolving digital payments landscape.
While the startup compellingly positions itself as a bridge between crypto holders and merchants constrained by slow, expensive legacy rails, its long-term impact will hinge on navigating regulatory fragmentation, trust deficits, and real merchant behaviour across diverse African markets.
The emphasis on stablecoins is economically sound, particularly in a region where remittance costs average 8.78 per cent, but widespread adoption will depend on sustained regulatory clarity, seamless bank and telco integrations, and education that demystifies crypto for everyday commerce.
Moreover, competition is intensifying, with global fintechs and local startups increasingly targeting the same pain points, meaning Ezeebit must move quickly from pilot-scale success to defensible network effects.
Nonetheless, the company’s FSCA regulation, credible investor backing, and early traction with premium merchants suggest a strong foundation; if it can translate this into mass-market utility without compromising compliance or affordability, Ezeebit could play a meaningful role in redefining how value moves across Africa’s digital economy.
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