TurnStay, a South African travel-focused fintech has secured $2 million in seed funding to expand its innovative payment infrastructure across African markets.
The startup aims to reduce high transaction costs and barriers for tourism businesses on the continent by processing card payments in tourists’ home countries and settling locally using stablecoins.
The startup claims to cut payment fees by up to 70%, improving access to global customers for African travel operators.
“We’re not just reducing costs, we’re enabling African travel companies to compete on a level playing field with international platforms,” said co-founder Alon Stern.
Reimagining Travel Payments in Africa
TurnStay was founded by Alon Stern (formerly of Slide Financial) and James Hedley (co-founder of Quicket),
It addresses one of the longstanding pain points in African tourism: high-cost, cross-border payments. Most local travel operators pay exorbitant transaction fees, wait long periods to receive payments, and face complex currency exchange hurdles.
TurnStay’s model, built on a merchant-of-record approach combined with payment orchestration, means tourists can pay in their local currencies, while African businesses receive funds quickly and in stablecoins.
This strategy not only reduces operational costs but also improves booking conversion rates, offering a smoother experience for both travellers and vendors.
Momentum and Market Confidence
The $2 million round, led by First Circle Capital, saw participation from prominent US and African venture capital firms including TLCom Capital, Enza Capital, Incisive Ventures, CVVC, and Equitable Ventures.
It builds on the $300,000 pre-seed funding raised in July 2024.
“With strong early traction, an exceptional founding team, and a massive untapped market, TurnStay is laying the foundation for the next generation of cross-border travel infrastructure,” said Agnes Aistleitner Kisuule, partner at First Circle Capital.
According to TurnStay, the company has processed over ZAR250 million (approximately $13.5 million) in transactions since its pre-seed round, and has secured partnerships with several industry leaders, demonstrating robust early performance and product-market fit.
Africa’s Untapped Tourism Power Could Supercharge TurnStay’s Growth
Africa boasts some of the world’s most compelling and diverse tourism destinations, from Kenya’s Maasai Mara and Egypt’s pyramids to Nigeria’s Idanre Hills and South Africa’s Cape Winelands.
According to the African Union, tourism contributes more than $168 billion annually to Africa’s GDP and employs 24 million people across the continent.
Yet, the sector remains underdeveloped in terms of global digital infrastructure. Many operators still rely on cash payments or outdated banking systems, limiting access to international customers.
TurnStay’s fintech model is uniquely positioned to bridge this digital gap, enabling small- and medium-sized tourism businesses, from safari lodges and eco-resorts to local tour guides, to receive international payments swiftly and affordably.
“With Africa’s vast tourism potential, TurnStay can become the digital backbone for an industry that’s long been excluded from global fintech innovation,” said Samuel Otieno, a travel technology expert based in Nairobi.
As African countries continue to invest in tourism infrastructure, airlines open new intra-African routes, and global interest in the continent’s natural and cultural attractions grows, TurnStay could emerge as the go-to fintech platform for frictionless cross-border travel payments.
Unlocking Growth Through Smart Infrastructure
With Africa’s tourism sector recovering and gaining global attention post-COVID, seamless payment systems are key to unlocking the continent’s full travel potential.
TurnStay’s technology hopes to empower small and medium-sized African travel companies, often underserved by traditional banking systems, to scale their services globally.
“This seed funding represents a major milestone in our mission to make global payment infrastructure accessible to African travel businesses,” Stern added.
As digital payments become more critical to global commerce, TurnStay’s model signals a growing trend of African startups tailoring fintech solutions to industry-specific challenges, offering infrastructure that is not only functional but truly transformative.
Talking Points
TurnStay’s expansion across African countries represents more than just a fintech growth strategy, it’s a purposeful effort to solve a deeply entrenched challenge in Africa’s tourism industry: the lack of accessible, affordable, and efficient cross-border payment infrastructure.
For decades, local tourism operators, from safari guides and eco-lodges to cultural tour companies, have been cut off from global markets due to high transaction fees, currency volatility, and outdated financial systems.
By enabling these businesses to accept payments in tourists’ local currencies and settle in stablecoins, TurnStay not only slashes payment costs by up to 70% but also shortens settlement times, making international transactions faster and more reliable.
What makes TurnStay’s approach especially powerful is its sector-specific focus; unlike general fintechs that attempt to serve all industries, TurnStay tailors its infrastructure to the unique needs of tourism, an industry dependent on international trust, speed, and simplicity.
This targeted model not only gives it a competitive edge but also empowers African tourism businesses to become visible and competitive on a global scale.
As the continent’s tourism potential continues to grow, TurnStay’s platform could serve as a digital gateway, spotlighting Africa’s cultural, historical, and ecological attractions to the world while enabling thousands of small and medium tourism businesses to scale, thrive, and finally get paid like their global counterparts.
