South African fintech startup Paymenow has secured a R400 million ($22.4 million) working capital facility from the Standard Bank Group, providing the company with fresh runway to scale its earned wage access (EWA) services across Africa.
The funding, structured under a sustainable finance format, is one of the largest institutional bets to date on the EWA model in the region.
Based in Stellenbosch, Paymenow enables employees to access a portion of their already-earned wages prior payday.
The model has resonated especially in markets where access to formal credit is limited, and where many workers rely on costly informal lending channels to make ends meet between pay cycles.
This latest funding round is not Paymenow’s first. In 2023, it raised ZAR250 million (~$14 million) in debt from Rand Merchant Bank to fuel its initial expansion.
However, the Standard Bank facility now significantly increases the company’s capacity, positioning it for growth beyond its existing markets in South Africa, Namibia, and Zambia.
CEO and co-founder Deon Nobrega sees the deal as more than capital, it’s institutional validation of the company’s model.
The partnership also shows a shift in how established banks are engaging with fintechs, not just as competitors, but as ecosystem partners solving real structural challenges.
Standard Bank has also integrated Paymenow into its OneHub platform, a digital environment designed to connect corporate clients with fintech solutions.
Through this, Paymenow’s services can now be offered directly to employers looking to support employee financial wellbeing.
Founded in 2019 and launched in early 2020, the startup was co-created by Nobrega alongside Willem van Zyl, Gerry Potgieter, and Garth Mackintosh, with ex-Springbok rugby star Bryan Habana joining as Head of Business Development.
Together, they’ve built a product that addresses one of Africa’s most persistent structural issues, the cost of liquidity.
For too many workers, being paid once a month means living in a constant cycle of shortfalls, borrowing, and fees.
The earned wage access model is not without its challenges, particularly in areas such as education, regulatory frameworks, and employer adoption.
But this kind of backing from one of Africa’s largest financial institutions sends a strong signal that the model is here to stay, and may play a more central role in reshaping access to liquidity for African workers.
While Paymenow hasn’t confirmed which new countries it will enter next, the fresh capital gives it the operational headroom to pursue its expansion goals at pace.
With demands growing fairer, more flexible alternatives to payday loans, Paymenow’s proposition may increasingly find resonance across the continent.
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