South African fintech startup Paymenow, a leading provider of earned wage access (EWA) services, has secured a R400 million ($22.4 million) working capital facility from Standard Bank Group, structured under a sustainable finance format.
This fresh capital injection will help the Stellenbosch-based firm scale its operations across key African markets, building on its current footprint in South Africa, Namibia, and Zambia. The deal also signals a growing institutional endorsement of EWA — a fintech model that enables employees to access part of their earned salaries ahead of payday.
“This facility from Standard Bank Group demonstrates that financial institutions recognise the transformative potential of earned wage access,” said Paymenow CEO and cofounder Deon Nobrega, who believes the model offers financial dignity to millions locked out of formal credit.
Standard Bank’s funding is more than just a bet on a startup — it’s an indication that Africa’s largest financial institutions are taking fintech seriously as partners in promoting financial inclusion and wellness.
“This transaction underscores Standard Bank’s support for fintech solutions and new business models,” said Noloyiso Mpanza, head of sustainable finance for transaction banking at Standard Bank Corporate and Investment Banking.
Paymenow has also been integrated into Standard Bank’s OneHub platform, a digital ecosystem for enabling fintech partnerships, allowing corporate clients direct access to Paymenow’s financial wellness tools for employees.
Why EWA Matters in Africa
EWA allows employees to draw down a portion of their wages before the official payday — a model that’s catching on fast across emerging markets. In Africa, where formal financial infrastructure is often patchy and workers frequently rely on loan sharks or informal lending networks to bridge short-term needs, EWA offers an alternative with no interest charges or employer risk.
“Millions of workers still live from paycheque to paycheque,” Nobrega noted. “Our solution gives them access to cash without taking out expensive loans, while also nudging them towards better financial habits.”
The platform includes gamified financial literacy tools, which users engage with to unlock additional features or access. According to Standard Bank, recent impact studies show that EWA users reported improved emergency response, less reliance on informal credit, and higher savings rates.
For employers, the value proposition is clear: EWA can reduce financial stress-related absenteeism, boost employee engagement, and improve retention — all without requiring changes to existing payroll systems. Importantly, the service is cost-neutral for employers.
Standard Bank has further enabled Paymenow with PayShap, South Africa’s real-time interbank payment system, ensuring the fintech can process fast disbursements and stay competitive in a rapidly evolving payments landscape.
Backed by Debt — Twice
This isn’t Paymenow’s first big facility. In 2023, the company raised ZAR250 million (~$14 million) in debt from Rand Merchant Bank to support its initial growth phase. The new Standard Bank facility more than doubles its previous funding and offers a clear path for scaling beyond its initial markets.
Founded in 2019 and launched in early 2020, Paymenow was built by a team that includes ex-rugby star Bryan Habana (Head of Business Development), along with Nobrega, Willem van Zyl (Technical Director), Gerry Potgieter (Head of Software Development), and founding investor Garth Mackintosh.
Together, they’ve built a business designed to tackle one of Africa’s most entrenched challenges: the high cost of being poor. Predatory payday lenders, informal credit groups, and inflexible monthly pay cycles have kept large parts of the continent’s workforce in cycles of debt.
With this new Standard Bank-backed facility, Paymenow plans to enter additional African markets, though the company hasn’t disclosed which territories are next.
What’s clear is that the earned wage access model, while still relatively new, is gaining traction. And with major banks now stepping in, it may be just the start of a broader financial infrastructure shift across the continent.