TurnStay raises $2M to expand cross-border payment solutions for african tourism

South African fintech processes over R250 million in transactions, offering payment infrastructure that reduces costs by up to 70% for travel operators across the continent

Alon Stern and James Hedley. 

TurnStay, a South African fintech company focused on payment infrastructure for the travel industry, has raised $2 million (over R34 million) in seed funding led by First Circle Capital. The round included participation from TLCom Capital, Enza Capital, Incisive Ventures, CVVC, and Equitable Ventures.

Founded by Alon Stern, previously of Prodigy Finance, and James Hedley, co-founder of Quicket which was acquired by Ticketmaster, TurnStay provides payment processing solutions for African travel and tourism operators. The platform addresses challenges including high transaction costs, failed international payments, and settlement delays that affect the sector.

The company operates as a merchant-of-record with payment orchestration capabilities. It processes card payments in travelers' home countries and settles funds locally using stablecoins. According to the company, this approach reduces payment fees by up to 70% and shortens settlement times compared to traditional payment processors that can charge over 7% per transaction.

"Since our pre-seed round last year, we've processed over R250 million in transactions and secured partnerships with industry leaders," states Alon Stern, CEO of TurnStay. "We're enabling African travel companies to compete on a level playing field with international platforms."

The platform integrates with existing booking engines and property management systems, allowing travel operators to implement the technology within their current workflows. TurnStay provides an alternative to global online travel agencies, which typically charge commissions and manage payment flows, enabling operators to increase direct bookings.

Africa's travel and tourism industry employs over six million people and processes more than $100 billion annually, according to industry data. Payment processing costs have been a challenge for local operators competing with international booking platforms. TurnStay aims to provide African businesses with payment processing capabilities similar to those used by international travel platforms.

"TurnStay is redefining travel bookings for Africa and other emerging markets," says Agnes Aistleitner Kisuule, partner at First Circle Capital. "By focusing on the travel and tourism segment, TurnStay delivers a customer experience and builds a defensible moat that sets it apart from generalist payment providers."

This funding follows a $300,000 pre-seed round in July 2024 from DFS Lab and DCG. The capital will be used to expand TurnStay's presence in African markets and develop its payment technology infrastructure.

"The combination of reduced payment processing fees and faster settlement times creates a value proposition for our clients," explains James Hedley, co-founder and COO. "While traditional African payment processing can cost over 7% per transaction, our solution delivers savings of up to 70% while improving the booking experience for international travelers."

With tourism to emerging markets growing and Africa experiencing increased international travel, demand exists for payment infrastructure solutions. TurnStay plans to expand its client base across African markets and continue developing its technology to serve the cross-border payment needs of the travel sector.

The company reports accelerating revenue growth and has established partnerships with travel industry operators as it works to address payment challenges in African tourism.