Fintech company TurnStay, based in South Africa, has raised $300,000 (more than R5.4 million) from investors DFS Lab and Digital Currency Group, based in Silicon Valley and New York. The company intends to build on the considerable traction already attained and use the funds to grow the business throughout Africa. TurnStay, founded by seasoned businessmen James Hedley, co-founder of Quicket, and Alon Stern, co-founder of Slide Financial, significantly lowers the cost of payment for African platforms and merchants in the travel and tourism industry by utilising the same “tricks” as the largest booking companies in the world.

“Having these U.S. investors provide funding shows their faith in our business model, which has already handled over R50 million in transactions [about $2.7 million],” stated Alon Stern, CEO of TurnStay.

“TurnStay creates a localised payment experience, charging clients in their home currency using familiar payment methods when booking accommodation. TurnStay’s solution has reduced costs for some clients by 70% and halved the number of unnecessary failed transactions. With a better checkout experience, sales conversion rates soar.”

In the travel sector, payment fees and fees imposed by online travel agents can make it costly to get paid.

The profitability of many enterprises in an industry that employs over six million people in Africa is significantly impacted by the fact that “the average merchant spends 12% of revenue on getting paid.” This is according to James Hedley, co-founder of TurnStay.

TurnStay offers hotels a secure and effective way to reduce their foreign payment costs by utilising a global network of certified businesses. It tackles the problem of African hotels paying costs that are up to 20 times more than those of online travel firms such as Booking.com.

Among the advantages for retailers are:

• Reduced card fees
• An enhanced checkout experience, and
• Increased direct bookings

allowing properties to increase conversion rates and more successfully compete with online travel agencies. The payment option offered by TurnStay is easily linked with top booking engine providers, including Benson Software.

DFS Lab General Partner Stephen Deng clarifies:

“TurnStay is developing a much-needed product for the travel and tourism sector in Africa, one that can save lodging companies all over the continent a significant amount of money. We think the founders, with their extensive industry experience and track record of delivering market-leading goods, are the ideal group to take on this challenge.