South African Fintech Ezeebit Secures $2 million to transform cryptocurrency payment infrastructure across African markets

The funding round led by Raba Partnership will enable the Cape Town-based startup to accelerate stablecoin adoption and provide merchants with faster, cheaper payment alternatives across the continent.

South African financial technology company Ezeebit has successfully raised $2.05 million in seed funding to expand its cryptocurrency payment infrastructure throughout Africa, marking a significant development for the continent's digital payment ecosystem that could reshape how businesses and consumers handle cross-border transactions and remittances.

The Cape Town-based startup, which operates under regulation from the Financial Sector Conduct Authority, has developed a platform that enables merchants to accept cryptocurrency payments while receiving settlements in stablecoins and local currency payouts within one business day.

Since its establishment in 2023, Ezeebit has demonstrated considerable traction in the South African market, processing over 30,000 transactions representing millions of dollars in gross merchandise value for prominent brands including iStore, Le Creuset, Scoin, Tintswalo Lodges, Amiri and Diesel. This early success positions South Africa as a potential leader in cryptocurrency payment adoption across the African continent, particularly as the company prepares to expand operations into Kenya and Nigeria, two of Africa's largest digital economies.

The investment round was spearheaded by Raba Partnership, which previously backed successful African fintech ventures including Flutterwave, Stitch, Fuse, and BVNK, alongside participation from Founder Collective, known for early investments in Uber, WHOOP, Airtable, and The Trade Desk. Strategic angel investors including Terry Angelos from Visa, Anton Katz from Talos, Nadir Khamissa of Hello Group, David De Picciotto formerly of Revolut, and Chris Harmse from BVNK also contributed to the round, bringing valuable expertise in global payments and cryptocurrency infrastructure.

Daniel Katz, Ezeebit's CEO and co-founder, emphasized that African merchants currently face significant constraints from slow and expensive traditional payment systems, while simultaneously, a growing number of consumers across the continent hold cryptocurrency for remittances and savings but struggle to find secure methods for spending these digital assets. The company's solution creates a compliant stablecoin settlement layer that effectively bridges decentralized and traditional finance systems, potentially unlocking access to global digital commerce for millions of African consumers and businesses.

The timing of this development is particularly significant for South Africa and the broader African market, where mobile money adoption has already familiarized hundreds of millions of consumers with digital payment methods through QR codes and account-to-account transfers. Katz views stablecoins as the natural evolution of this digital payment transformation, especially considering that Sub-Saharan Africa remains the world's most expensive region for receiving remittances at 8.78 percent average cost, making cryptocurrency rails an increasingly attractive alternative for cross-border money transfers.

This dynamic creates what Katz describes as a reinforcing growth loop where consumers who receive cryptocurrency remittances are eager to spend these funds on goods and services, driving merchant adoption and further expanding the ecosystem. The phenomenon is particularly relevant for South Africa, which serves as a major financial hub for the continent and hosts a sophisticated fintech sector that could accelerate cryptocurrency payment adoption across neighboring markets.

David Frankel, co-founder and managing partner at Founder Collective, characterized the African market opportunity as extraordinary, noting that millions of people across the continent hold cryptocurrency but lack spending options, while merchants seeking faster and more affordable payment rails remain constrained by legacy systems. He praised Ezeebit's team for their ability to integrate modern financial technology with deep understanding of African market dynamics, a combination essential for navigating the continent's diverse regulatory environments and consumer preferences.

The funding will primarily support product development initiatives and merchant acquisition efforts across South Africa, Kenya, and Nigeria, while also facilitating strategic partnerships with banks, payment service providers, and telecommunications companies. These partnerships could prove crucial for scaling cryptocurrency payment infrastructure across Africa, where traditional financial institutions and mobile network operators maintain significant influence over payment ecosystems.

For South Africa specifically, Ezeebit's growth represents an opportunity to cement the country's position as a leader in African fintech innovation, potentially attracting additional investment and talent to the local technology sector. The company's regulatory compliance with FSCA requirements also demonstrates that cryptocurrency payment solutions can operate within existing regulatory frameworks, potentially encouraging other African nations to develop similar regulatory approaches that balance innovation with consumer protection.

As cryptocurrency adoption continues accelerating across Africa, driven by factors including currency volatility, limited banking infrastructure, and high remittance costs, Ezeebit's expansion could catalyze broader transformation in how African businesses and consumers engage with global digital commerce, positioning South Africa at the forefront of this financial evolution.