TurnStay Drives Digital Transformation in African Travel Sector

South African fintech startup TurnStay has achieved a significant milestone by processing over ZAR1 billion (US$61.5 million) in travel payments within just six months of operation—less than three years after its founding.

Closing the Payment Gap for African Businesses

Founded by Alon Stern and James Hedley, experienced entrepreneurs from Slide Financial and Quicket respectively, TurnStay addresses a critical challenge faced by African travel businesses: high transaction fees when dealing with international guests. By employing a merchant-of-record model combined with payment orchestration, the startup reduces these costs by up to 70%, significantly improving profitability for its clients.

Innovative Approach to Cross-Border Payments

TurnStay’s solution involves processing card payments in travelers’ home countries while settling funds locally—utilizing stablecoins to facilitate efficient and low-cost transfers. This approach not only reduces fees but also shortens settlement times and improves booking conversion rates.

“Getting paid can be expensive in the travel industry, and African merchants have historically carried a disproportionately higher cost than their overseas counterparts,” Stern explained. “We’ve built our business around closing that gap—and the traction we’re seeing confirms this is what the market needs.”

While traditional local payment processing for foreign bookings can reach 8% of the transaction value, TurnStay clients typically pay between 1.6% and 2%, representing substantial savings.

Expanding Across the Continent

TurnStay’s client base includes prominent names in African travel like Singita, Safari.com, Londolozi, and The Capital—ranging from luxury safari lodges to villa agencies and tour operators. With a current presence in South Africa, Mauritius, Kenya, Tanzania, and Botswana, the company is poised for continued expansion across the continent.

“Three years ago we were just two people with an idea,” Stern noted. “Now we’re processing over a billion rand every six months for some of the most recognized brands in African travel—and this is only the beginning.”

The startup has already secured $300,000 in pre-seed funding and $2 million in seed capital, with plans to raise a Series A round to support its growth trajectory.