Kenya-based fintech Kotani Pay has announced its expansion into Rwanda and Uganda, marking a pivotal step in East Africa’s digital finance landscape. The expansion follows Kotani Pay’s a $2 million pre-seed funding round last year, led by P1 Ventures and backed by investors including DCG/Luno and Flori Ventures. Kotani Pay, a licensed on-ramp and off-ramp service provider, aims to address Africa’s cross-border remittance challenges by offering simplified, accessible solutions for fintech and Web3 companies.
As the first blockchain fintech company in South Africa to receive the Crypto Asset Service Provider (CASP) license from South Africa’s Financial Sector Conduct Authority (FSCA), Kotani Pay has positioned itself as a trusted bridge between fiat and digital currencies. The company also holds SOC II compliance and registration with South Africa’s Financial Intelligence Centre, reinforcing its commitment to security and regulatory compliance.
A Game Changer for Fintech and Web3 in Emerging Markets
The expansion into Rwanda and Uganda places Kotani Pay at the center of emerging markets with a growing appetite for fintech and Web3 solutions. These countries, known for their rapid digital adoption, provide fertile ground for Kotani Pay’s API-based on-ramp/off-ramp services. By integrating with local payment channels, Kotani Pay allows businesses and users to seamlessly transition between traditional and digital currencies, broadening access to the digital economy across East Africa.
This move offers local fintech companies and Web3 platforms an opportunity to scale and tap into new client bases. Through Kotani Pay’s easy-to-integrate API, companies can embed cash-in and cash-out functionality, allowing users to convert assets with ease. For many businesses, especially those focused on serving underbanked populations, Kotani Pay’s platform facilitates cross-border transactions, which have often been complicated by high fees and regulatory hurdles.
“The move into Rwanda and Uganda is about empowering our clients to operate with confidence in these dynamic markets,” said Felix Macharia, CEO of Kotani Pay. “We aim to remove technical and regulatory barriers, allowing fintech and Web3 businesses to focus on growth and innovation across borders.”
Kotani Pay’s API enables seamless integration of various local payment channels, such as mobile money, e-wallets, vouchers, and banks. By expanding its services, Kotani Pay is supporting the wider digital finance ecosystem, allowing Web3 companies, decentralized finance platforms, wallets, and exchanges to provide compliant on-ramp and off-ramp options to users in East Africa. In particular, its functionality supports transactions in Rwandan Francs and Ugandan Shillings, facilitating local engagement and operational scalability.
For Web3 businesses, this development represents a critical pathway to engage users in East Africa’s digital markets. By offering solutions that bridge traditional and blockchain-based finance, Kotani Pay is easing entry for crypto projects in a region where regulatory frameworks around digital assets are evolving. The platform’s interoperability with 15 blockchain protocols further enhances its value for businesses aiming to deliver agile, borderless solutions to customers.
Kotani Pay’s recent funding has underscored its vision of tackling payment fragmentation across Africa. Since its inception, the Nairobi-based company has focused on reducing cross-border transaction costs, particularly for Africa’s underbanked populations. By leveraging blockchain technology, Kotani Pay aims to make remittances more efficient and affordable.
The funding and CASP license have enabled Kotani Pay to scale its solutions with a focus on regulatory compliance, positioning it as a key player in Africa’s expanding fintech scene. According to industry analysts, the company’s approach aligns well with the continent’s demand for secure, low-cost, and high-speed digital payment solutions, as well as growing interest in blockchain and crypto-based services among African consumers and businesses.
As it moves into Rwanda and Uganda, Kotani Pay strengthens its foothold in East Africa’s fintech market, which has seen increased investment in recent years. This expansion is not only a milestone for the company but also a reflection of the region’s increasing adoption of digital finance technologies. With support from investors and partners, Kotani Pay is poised to play a significant role in the development of Africa’s financial infrastructure, bridging the gap between traditional and digital currencies for everyday users and businesses alike.