South African fintech TurnStay raises US$2M to revolutionize cross-border travel payments in Africa

SOUTH AFRICA – TurnStay, a South African fintech startup focused on cross-border payments within the travel and tourism industry, has successfully raised over ZAR 34 million (US$2 million) in a recent pre-seed funding round.

The fundraising round was led by First Circle Capital, a prominent Africa-focused early-stage fintech investor, with strong backing from TLCom Capital, Enza Capital, Incisive Ventures, and Evergreen, among others.

This strategic capital injection will enable TurnStay to scale its innovative payment infrastructure across multiple African markets, addressing longstanding cross-border payment challenges that impact the travel sector.

Travel operators in Africa frequently face high card transaction fees, repeated payment failures, and prolonged settlement delays.

TurnStay’s solution is designed to eliminate these inefficiencies, offering a streamlined and cost-effective payment experience for tourism businesses.

By leveraging a merchant-of-record model combined with stablecoin-based payouts, TurnStay processes payments in travelers’ home currencies while facilitating local settlement for merchants.

This approach reduces transaction fees by up to 70%, substantially lowers operational costs, and accelerates payment settlement times, thereby improving cash flow and booking conversion rates for travel operators.

The platform integrates seamlessly with popular booking engines and property management systems, ensuring easy adoption without disrupting existing workflows.

Since its inception, TurnStay has processed over ZAR 250 million (US$14 million) in transaction volume and established key partnerships within the travel industry.

The startup aims to empower African travel businesses with access to fintech tools comparable to those used by global players, while enabling more direct bookings by bypassing costly international travel agent commissions.

Co-founder and COO James Hedley highlighted that TurnStay not only cuts costs dramatically but also enhances the booking experience for international travelers.

Founder Alon Stern emphasized that this funding milestone supports TurnStay’s mission to democratize global payment infrastructure for Africa’s tourism sector.

The travel and tourism industry represents a critical part of Africa’s economy, supporting more than six million jobs and generating annual revenues exceeding ZAR 1.8 trillion (US$105 billion).

TurnStay’s innovative financial technology solutions are poised to unlock new growth and efficiency, helping local operators thrive amidst a growing global travel market.

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