Early Wage Access provider Paymenow secures a $22M investment to expand operations across Africa.
Paymenow Secures Funding for Expansion, Aiming to Enhance Financial Inclusion in Southern Africa
The early wage access sector is experiencing rapid expansion, with market size estimates ranging widely but confidently forecasting multibillion-dollar valuations by 2034. Research Nester predicts the market to grow from $30.83 billion in 2025 to over $242.46 billion by 2034, reflecting an annual growth rate of 25.75%.
In the heart of this growth, South African fintech company Paymenow has secured a significant boost. Standard Bank has extended a credit facility of 400 million rand (approximately $22 million) to the firm, marking a pivotal step towards expanding financial inclusion for millions of workers.
Deon Nobrega, CEO of Paymenow, views this loan as a pivotal move. He sees it as a means to scale their early wage access platform, which currently operates in South Africa, Namibia, and Zambia, and plans to expand into more African regions where conventional financial services fall short.
Paymenow enables workers to withdraw a portion of their earned wages ahead of payday without incurring fees or interest, providing a much-needed alternative to the informal lenders or costly credit options that many workers often resort to. This weak savings culture leaves millions of workers exposed, with data from Paymenow highlighting a severe household savings crisis in South Africa, where the savings rate is at negative 1%.
Standard Bank believes that collaboration between traditional financial institutions and fintech firms can redefine how employers and employees interact financially. Nobrega emphasizes the need to disrupt the pattern of recurring debt through a model grounded in consistent earnings and long-term financial resilience.
Paymenow handled over one million transactions each month in 2025 and supports close to 500,000 active users, up from only a few hundred at its inception. The company aims to leverage this funding to further strengthen its position in the market and continue providing a vital service to workers facing urgent financial needs.
The current global Earned Wage Access (EWA) market is projected to grow at a compound annual growth rate (CAGR) of about 25.7% from 2025 to 2034, reaching a market size of around USD 61.06 billion by 2034. This growth is driven by factors such as the increasing number of gig and hourly workers, greater adoption of technology-enabled wage access services, and rising demand for flexible pay solutions that reduce reliance on predatory payday loans.
In South Africa, national savings account for just 15% of GDP, well below the global average of 28%. Nobrega's vision for Paymenow is to help change this narrative, empowering workers to take control of their financial futures and fostering a culture of savings and financial stability.
As the early wage access sector continues to grow, Paymenow's expansion beyond Southern Africa is a testament to the potential of this innovative approach to financial inclusion. The partnership with Standard Bank is seen as a key element in Paymenow's wider mission to empower African fintechs and transform the financial landscape for workers across the continent.
Financial inclusion in Southern Africa is a focus for Paymenow, as they aim to expand their early wage access platform with the help of a 400 million rand credit facility from Standard Bank. Deon Nobrega, CEO of Paymenow, sees this funding as an opportunity to scale their business, currently operating in South Africa, Namibia, and Zambia, into more regions where conventional finance services are limited.
