Bitmama acquires Payday to strengthen its blockchain payments service

Blockchain payments platform Bitmama Inc. has confirmed the acquisition of Payday, a virtual card service provider, marking a significant move in Nigeria’s fintech scene.

Not even nine months have passed since Payday revealed its $3 million seed round and three months have passed since it was acknowledged that the company was exploring sale alternatives. The transaction, made possible by Bitmama’s cross-border payments platform Changera, is a significant departure from previous rumours, which included the possibility of a lead investor, Moniepoint, making an acquisition. Changera plans to buy out all Payday’s clients to unify its blockchain payment network.

Acquisition discussions were started only a few weeks ago, according to a person close to the situation who declined to identify the financial specifics of the sale and told Newsmen that the process is “about 85% complete.” According to another source, the transaction is all stock and is worth “millions of dollars.”

Many of Payday’s core employees will join Changera when it launches in 2021, working in marketing, customer support, engineering, and other departments. A few Payday employees have already made the switch to Changera as a result of this integration. It is not yet confirmed that Payday CEO Favour Ori, a founder with strong technical experience, will integrate into Bitmama’s staff. But it seems more likely that Bitmama will step down given his solid technical staff and well-established leadership.

Acquisition discussions were started only a few weeks ago, according to a person close to the situation who declined to identify the financial specifics of the sale and told Techpoint Africa that the process is “about 85% complete.” According to another source, the transaction is all stock and is worth “millions of dollars.”

Many of Payday’s core employees will join Changera when it launches in 2021, working in marketing, customer support, engineering, and other departments. A few Payday employees have already made the switch to Changera as a result of this integration. It is not yet confirmed that Payday CEO Favour Ori, a founder with strong technical experience, will integrate into Bitmama’s staff. But it seems more likely that Bitmama will step down given his solid technical staff and well-established leadership.

The acquisition is expected to broaden the services offered to Changera clients by giving them access to Payday’s digital payment options.

There aren’t any immediate plans to modify the terms of service or charge schedules for Payday clients. Customers should, however, expect an improved portfolio of services and possibly new features as the integration moves further, utilizing the combined strengths of Bitmama and Payday.

Bitmama is prepared to start an ambitious roadmap after its acquisition. Developing a new solution to improve FX transactions for African businesses is at the heart of this strategy. This solution is anticipated to fill a significant gap in the industry by enabling more seamless and effective B2B cross-border financial transactions. It is scheduled for debut in Q1 2024.

Bitmama’s acquisition of Payday is consistent with a larger pattern of deliberate mergers and acquisitions in the fintech sector. It follows previous acquisitions, like Risevest’s September 2023 purchase of Chaka. This tendency of consolidation points to a developing pattern in which fintech companies are looking more and more for strategic alliances and acquisitions to get over obstacles in the market and grow their businesses.