Recently, Ezeebit, the FSCA-regulated stablecoin payments infrastructure startup, announced a $2.05 million seed round led by Raba Partnership and Founder Collective, with participation from high-calibre angels including Terry Angelos (Visa), Anton Katz (Talos), Nadir Khamissa (Hello Group), David De Picciotto (ex-Revolut), and Chris Harmse (BVNK).
The round is modest by Silicon Valley standards but strategically enormous for Africa. It signals confidence in compliant, merchant-ready stablecoin rails that could slash transaction fees, free billions in locked-up crypto value, and bring digital dollars into mainstream retail.
If successful, it represents a tipping point: a shift from crypto as speculation to crypto as spendable money.
Founded in 2023 by brothers Daniel, David, and Jonathan Katz, Ezeebit is the region’s first FSCA-licensed Crypto Asset Service Provider (CASP) built specifically for stablecoin payments.
Its infrastructure allows merchants to accept crypto from any wallet, USDC, USDT, or even Bitcoin, with:
- instant stablecoin settlement, and
- next-business-day fiat payouts in ZAR, KES, or NGN.
No 2–3% card fees.
No 3–5 day settlement delays.
No painful decline rates.
Just cheaper, faster, borderless payments.
The product already works at scale:
Ezeebit has processed 30,000+ transactions with early enterprise clients such as iStore (Apple), Le Creuset, Amiri, Diesel, Scoin, and Tintswalo Lodges.
As CEO Daniel Katz frames it:
“African consumers hold crypto for remittances and savings but can’t spend it easily. We bridge that gap with compliant stablecoin settlement and low fees.”
The seed round will accelerate:
- deeper bank, PSP, and telco integrations (e.g., MTN MoMo, M-Pesa)
- more robust crypto↔fiat on/off-ramps
- merchant expansion across Johannesburg, Nairobi, and Lagos.
Sub-Saharan Africa remains the world’s most expensive region for moving money. The stats are brutal:
- 50% of adults remain unbanked.
- Credit card penetration: 4%
- Cross-border remittance fees: 6.5% on average
- Inflation spikes: 20–30% in multiple markets
- Remittances: $53 billion in 2024
No wonder African users increasingly save in USDC/USDT. According to Chainalysis, Africa accounts for 27% of global stablecoin volume, driven by diaspora inflows and currency instability.
But spending these dollars has been nearly impossible until solutions like Ezeebit began stitching together compliant rails between merchants and crypto liquidity.
As Raba’s George Rzepecki puts it:
“Ezeebit is rebuilding the payment stack with compliant stablecoin rails.”
What the $2.05M Seed Unlocks
This is execution capital, aimed at tangible expansion rather than runway theatre. Here’s what it changes:
1. Merchant Adoption Should Accelerate Rapidly
Stablecoin fees average 1% or lower—a 68% reduction versus cards.
Merchants get faster liquidity. Consumers get a cheaper checkout.
With this round, Ezeebit targets 10,000+ merchants across three countries in 12 months. Luxury brands have already embraced the rails; e-commerce giants like Takealot or Jumia could follow.
2. Regulatory Moats Strengthen
Being licensed by the FSCA is a major competitive advantage.
Seed capital will fund:
- a CBK licence in Kenya
- a CBN licence in Nigeria, where stablecoin pilots are underway
Visa’s Terry Angelos brings credibility and policy navigation firepower to markets where crypto regulation remains fluid.
3. Network Effects Kick In
With improved on/off-ramps, a consumer can:
- receive a stablecoin remittance,
- scan a QR code, and
- Pay at checkout without relying on legacy rails.
GMV could multiply from millions to tens of millions, drawing larger funds for Series A.
4. Social and Financial Impact Compounds
If Ezeebit captures even 5–10% of Africa’s stablecoin volume:
- Merchants save $100M+ in annual fees.
- Consumers gain spendability.
- Unbanked youth and women access digital dollars without friction.
For millions, this could mean groceries, school supplies, and everyday essentials purchased through remittance USDC from Lagos to Eldoret.
READ ALSO:Africa’s Fintech Giants Embrace Stablecoins: Smart Bet or Risky Gamble?
Snapshot of Before-and-After Impact
| Metric | Pre-Seed | 12-Month Projection |
|---|---|---|
| Transactions | 30,000+ | 300,000+ |
| GMV | Millions USD | Tens of millions USD |
| Merchant Count | ~10 | 1,000+ across SA, Kenya, Nigeria |
| Market Coverage | South Africa | Tri-market expansion |
| Fee Savings | 68% vs cards | Applied to e-com + retail at scale |
Ezeebit isn’t immune to uncertainties:
- Market cycles may chill consumer appetite.
- Nigeria’s forex controls remain unpredictable.
- Competitors like Valr, Bitrefill, or global PSPs could enter the space.
- Telco integrations are hard, slow, and political.
But with investors from Visa, BVNK, Talos, and Hello Group, Ezeebit has the kind of strategic talent, compliance rigour, and operator DNA that most crypto-payments startups lack.
It cements a future where stablecoins serve as everyday currency usable at checkout counters, not just stored on exchanges.
crypto payment Overview
A crypto payment app enables users and businesses to accept crypto payments online through a crypto payment gateway, allowing customers to pay using digital assets.
Businesses can generate a crypto payment link or integrate a crypto payment gateway without KYC (where supported) to process crypto payment online quickly and globally.
The best crypto payment solutions often offer low fees, fast settlement, and multi-currency support, with some platforms providing free crypto payment options for basic usage while scaling for merchants of all sizes.
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.
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