Bitmama plans to expand fintech business, finally acquires Payday

Fintech startup Payday, which secured a $3 million seed funding in February, is set to be purchased by Bitmama Inc., a company operating in blockchain-based payment solutions.

Payday, founded by Favour Ori, has been in the Fintech business since 2021 but now will be acquired by Bitmama after several deliberations between both parties. While Payday was in business, it provided Africans with the opportunity to transact globally using different currencies. 

Bitmama, a crypto trading platform currently pioneered by Ruth Iselema has reportedly proposed a deal to PayDay investors, offering them $1 million in equity within the cryptocurrency firm valued at $30 million.

Ruth had mentioned that Favour contacted her because they're developing products beyond crypto and one of these products, Changera, was particularly relevant to him. Also, Iselema shared that Bitmama, originally created as a cryptocurrency exchange, has shifted its focus to global services like remittance. She further explained that in the event of a successful deal, Bitmama wouldn't need to initiate Changera, their fairly recent remittance service, from the ground up. 

Although Payday has done good work since it started; however, recently, it has been in the news a lot of times and has received its share of media criticism. Even some of the employees have had a thing to say about how things do not seem to be going right with the company. 

Considering all of what has happened, Bitmama making moves to purchase Payday may come off as a relief to the fintech company or not. But, according to the CEO, Favour Ori, "the deal is a work in progress and if the deal goes through, the result will be a strong team with a stronger efficiency." According to the plan, Changera is set to integrate several important employees from Payday into different divisions such as marketing, customer service, and engineering. Also, Bitmama will take on Payday's customer deposits and responsibilities.

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