Africa Digest News

South African fintech startup TurnStay has secured $2 million (over R34 million) in seed funding to modernise travel payments across Africa.

The round was led by First Circle Capital, with participation from TLcom Capital, Enza Capital, Incisive Ventures, CVVC, and Equitable Ventures.

Their shared goal? Fix a broken system. Despite Africa’s tourism industry generating over $100 billion annually and employing more than six million people, outdated payment infrastructure continues to choke local travel businesses.

TurnStay aims to change that by offering faster, fairer, and more flexible payment solutions for the continent’s tourism operators. But could it be the game-changer Africa’s travel sector needs?

Why Africa’s Travel Payments Need a Shift

Imagine running a safari lodge or boutique hotel in Africa. You’re competing globally, but high transaction fees (up to 12%), failed international payments, and slow settlements are eating into your margins.

Add to that the 15-20% commissions charged by global OTAs like Booking.com, and it’s clear why local operators struggle to scale.

TurnStay, founded by Alon Stern (ex-Prodigy Finance) and James Hedley (co-founder of Quicket, acquired by Ticketmaster), is stepping in to rewrite this narrative.

READ ALSO:How One Feature Is Accelerating South Africa’s Shift to Digital Payments

How TurnStay is Changing the Game

TurnStay’s platform is focused on solving the unique challenges of Africa’s travel industry. Here’s what makes it stand out:

• Smarter Payments: By processing card payments in the traveller’s home currency, TurnStay boosts booking conversions by up to 70%, reducing failed transactions.
• Cost Savings: Using stablecoin settlements, it cuts transaction fees by up to 70% compared to traditional providers, putting more money back into businesses.
• Seamless Integration: TurnStay plugs into existing booking engines and property management systems, making adoption effortless.
• OTA Independence: By enabling direct bookings, it helps operators bypass costly global OTAs, improving profitability.

As Agnes Aistleitner Kisuule from First Circle Capital notes: “TurnStay is building the infrastructure to power Africa’s travel bookings… Its early traction and stellar team make it a standout in a massive market.”

The Power Behind the Funding

Announced on August 5, 2025, TurnStay’s $2 million seed round builds on a $300,000 pre-seed from DFS Lab and Digital Currency Group (DCG) in July 2024.

The latest round, led by First Circle Capital, includes a diverse mix of investors:

• TLcom Capital: A leader in African tech investments.
• Enza Capital: Focused on high-growth African startups.
• Incisive Ventures: A US-based fund backing disruptive tech.
• CVVC: Specialists in blockchain-driven solutions.
• Equitable Ventures: Supporting scalable, impactful businesses.

This backing isn’t just financial; it’s a vote of confidence in TurnStay’s vision to transform travel payments across Africa.

TurnStay’s Edge: Travel-First, Africa-Focused

Unlike generic payment platforms, TurnStay is built for travel, with a deep understanding of Africa’s tourism ecosystem. Its merchant-of-record model and payment orchestration create a seamless experience for both operators and travellers.

With over R250 million in transactions processed and partnerships with key industry players, TurnStay is proving its model works.

The Opportunity: Africa’s Tourism Surge

Africa’s travel sector is experiencing growth, with increasing international arrivals and a growing demand for seamless booking experiences.

Yet, local operators are often at a disadvantage due to high costs and reliance on global platforms. TurnStay’s solution empowers businesses to take control, driving economic growth and supporting the R1.8 trillion tourism industry.

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What’s on the Horizon?

With its $2 million infusion, TurnStay is gearing up to:

• Scale Operations: Expand into new African markets to onboard more travel operators.
• Enhance Tech: Strengthen its payment infrastructure to handle growing demand.
• Deepen Partnerships: Grow integrations with booking platforms to drive adoption.

The Verdict: Is TurnStay the Missing Piece?

TurnStay isn’t just solving a payment problem; it’s empowering African travel businesses to thrive in a global market.

With a travel-specific focus, proven traction, and robust funding, it’s well-positioned to become a cornerstone of Africa’s tourism economy. Could it be the missing link? The signs point to yes.

Stay tuned for TurnStay’s next moves as it reshapes the future of travel payments in Africa!

Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.