TurnStay.com, a South African fintech company specializing in travel payments, has announced a $300,000 investment from Silicon Valley-based DFS Lab and New York-based DCG. This significant funding round will fuel the company’s expansion across Africa and solidify its presence in the local market.

Founded by seasoned entrepreneurs Alon Stern and James Hedley, TurnStay addresses a critical challenge in the African travel and tourism industry: the high cost of payment processing for hotels and travel accommodations. By leveraging innovative technology and API integration, TurnStay claims to reduce these costs by up to 70%, enabling businesses to attract more direct bookings.

Direct bookings, in turn, eliminate the hefty commissions typically paid to online travel agencies, directly impacting the profitability of travel and tourism businesses across the continent. This is particularly crucial in a sector that employs over six million people in Africa.

Stephen Deng, General Partner at DFS Lab, expressed confidence in TurnStay’s potential, stating, “TurnStay is building a much-needed offering for the African travel and tourism industry, one that unlocks substantial cost savings for hospitality businesses across the continent. We believe the founders are the perfect team to tackle this opportunity, combining deep industry experience with a proven history of shipping market-leading products.”

TurnStay’s solution not only reduces costs but also streamlines the payment process for international travelers. By utilizing a global network of compliant companies, TurnStay ensures secure and efficient transactions while allowing customers to pay in their local currency using familiar payment methods.

CEO Alon Stern emphasized the significance of this investment, stating, “Securing funding from these US investors is a vote of confidence in our business model, which has already processed more than R50 million in transactions. TurnStay creates a localized 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.”

With this new injection of capital, TurnStay is poised to revolutionize how the African travel industry handles payments, ultimately benefiting both businesses and travelers alike.