TurnStay, a South African travel-focused fintech, has secured R5.4 million ($300,000) from U.S.-based venture capital firms DFS Lab and Digital Currency Group (DCG). This new funding round will be used to expand across Africa and solidify TurnStay’s position in the local market.
Alon Stern, co-founder of TurnStay, highlighted that this investment reflects the confidence of the investors in TurnStay’s business model. The fintech aims to create a localized payment experience, charging clients in their home currency using familiar payment methods when booking accommodation, significantly reducing costs and improving transaction success rates.
TurnStay has made impressive strides since its founding in 2021. By leveraging innovative technology and API integration, the company claims to reduce costs for clients by up to 70% and halve unnecessary failed transactions. This results in a better checkout experience and higher sales conversion rates.
James Hedley, co-founder of TurnStay, emphasized the critical impact of high payment processing costs on the African travel and tourism industry. TurnStay’s solution addresses this challenge by reducing the average merchant’s revenue commitment to payments from 12%, enhancing the profitability and viability of businesses in a sector employing over six million people in Africa.
In addition to cost reductions, TurnStay simplifies payment procedures for international travelers through a global network of compliant companies. This ensures secure and efficient transactions, allowing customers to pay in their local currency using familiar payment methods.
With the African travel and tourism market projected to reach $24.42 billion by 2024 and grow to $29.66 billion by 2028, TurnStay’s innovative approach is poised to significantly impact the industry. The company’s efforts to reduce costs and enhance payment processes will likely attract more direct bookings, benefiting travel and tourism enterprises throughout the continent.
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