By 
Bitmama Inc., a prominent blockchain payments platform in Nigeria, has made a significant move in the country’s fintech sector by acquiring Payday, a virtual card service provider.
This development follows closely on the heels of Payday’s announcement of a $3 million seed round just nine months ago and confirmation of its exploration of sale options three months ago. Facilitated through Bitmama’s cross-border payments product, Changera, the acquisition signifies a strategic shift from earlier speculations, including a potential acquisition by lead investor Moniepoint. Changera aims to strengthen its blockchain payment platform by acquiring 100% of Payday’s customer base.
While financial terms remain undisclosed, sources reveal that discussions about the acquisition began only a few weeks ago and are now approximately 85% complete. Reports suggest it’s an all-stock deal valued at “millions of dollars.”
Launched in 2021, Changera is set to integrate key personnel from Payday, spanning departments like marketing, customer service, and engineering. Already in progress, this integration involves Payday employees transitioning to Changera. The role of Payday CEO Favour Ori, known for his strong technical background, in Bitmama’s team is yet to be confirmed. However, given Bitmama’s established leadership and technical strength, it’s likely he may step away.
For Payday’s reported 300,000 customers, now under Changera’s purview, there are no anticipated noticeable changes.
According to a senior member of Bitmama’s management, Payday’s brand will continue operating under the broader Changera umbrella, supported by its stablecoin infrastructure. This integration aims to address challenges Payday faced due to third-party dependencies, potentially enhancing customer experience and service reliability. Payday had previously encountered operational challenges, including industry-wide charge-back fraud, disruptions in Mastercard services, and the departure of senior team members in July 2023.
For Changera customers, the acquisition promises an expanded array of services, incorporating Payday’s digital payment solutions.
In the short term, no alterations are planned for Payday’s fee structures or terms of service. However, as integration progresses, customers can expect an enhanced suite of services and potentially new features leveraging the combined strengths of Bitmama and Payday.
Post-acquisition, Bitmama is set to pursue an ambitious roadmap, with a key focus on developing a new solution to improve FX transactions for African businesses. Expected to launch in Q1 2024, this solution aims to address critical market needs, facilitating smoother B2B cross-border financial interactions.
Bitmama’s acquisition of Payday aligns with a broader trend of strategic consolidations in the fintech industry, reminiscent of the Chaka acquisition by Risevest in September 2023. This trend underscores a growing pattern where fintech companies seek strategic partnerships and acquisitions to overcome market challenges and scale operations.
Comments