• TurnStay raises $2m to cut Africa travel payment fees.

• Startup claims up to 70% savings via stablecoin model.

• Launches free booking platform to bypass agency fees.

South African fintech startup TurnStay has raised $2 million in a recent funding round to expand its payment platform, which aims to significantly reduce transaction costs for the African travel industry.

Founded in 2021 by Alon Stern and James Hedley, the Cape Town-based company has developed a solution to lower payment processing fees by up to 70%. The platform acts as a "merchant of record," processing international card payments in the traveler's home country and settling funds locally using stablecoins. This model minimizes currency conversion risks and high banking commissions, which can translate into more competitive pricing for tourists.

"Since our pre-seed round last year, we’ve processed over ZAR250 million in transactions and secured partnerships with industry leaders. This validates our approach and demonstrates the substantial value we create for the industry. 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.

The funding will support the growth of its core payment service and its new commission-free online travel agency platform, TurnStay Explore. This secondary platform allows accommodation providers to list their properties directly, bypassing the high fees charged by major online travel agencies and further enhancing the continent's appeal to international visitors.

This article was initially published in French by Adoni Conrad Quenum

Adapted in English by Ange Jason Quenum