Payd, a Kenyan payments startup, plans to resume its services on Friday after foreign exchange (FX) losses left it short of the funds needed to meet some customer balances, forcing it to pause payouts around May and overhaul its treasury system.
Founded in 2023 by Benaiah Wepundi, Payd enables freelancers, contractors, and businesses to receive international payments and convert them into local currencies. As of February, Payd said it served about 30,000 users across Kenya, Nigeria, South Africa, and Senegal.
Payd’s experience highlights one of the less visible risks in Africa’s cross-border payments market: a fintech can generate millions of dollars in payouts while still losing money if it fails to properly match the currencies, timing, and cost of the funds moving through its system.
Payd has denied shutting down after its services stopped working, leaving customers unable to complete some transfers and questioning the company’s silence over the disruption. Posts from customers on X also raised concerns about failed or delayed transfers, with some saying the service stopped working without a clear explanation.
Originally published by TechCabal.