Ezeebit raises $2.05m to scale stablecoin payments across Africa

South African crypto-payments startup Ezeebit has secured $2.05 million in seed funding to expand its stablecoin-powered payment infrastructure across South Africa, Kenya, and Nigeria. The round, which is above Africa’s average seed size, will support product development and deeper partnerships with banks, PSPs, and telcos.

The two-year-old company allows merchants to accept crypto payments while receiving instant stablecoin settlement and next-business-day local payouts. Since launching in 2023, Ezeebit says it has processed more than 30,000 transactions for brands such as iStore, Diesel, Le Creuset, Scoin, and several hospitality groups.

The investment was led by Raba Partnership and Founder Collective, alongside strategic angels with deep backgrounds in payments, crypto, and fintech infrastructure.

A payment problem merchants can’t ignore

Across many African markets, payment costs remain one of the biggest threats to merchants operating on thin margins. Card fees of 2–3% may seem small in the US, but for retailers selling groceries, airtime, clothing, or electronics in South Africa and other countries, those charges can erase profits entirely. Settlement delays, often stretching up to five days, add more pressure, especially when working capital is tight.

This is the gap Ezeebit is targeting. The company’s system accepts a range of tokens, converts them instantly to stablecoins, and settles to local currency the next business day. For merchants, fees often fall below 1%, and transactions clear immediately, reducing both risk and operational stress. Many consumers already hold crypto for remittances and savings, and Ezeebit wants to make that value spendable in everyday stores.

The growing use of digital payments across the continent also supports this shift. Smartphone penetration is rising quickly, mobile money has made QR payments familiar, and crypto inflows into Sub-Saharan Africa crossed $205 billion between mid-2024 and mid-2025.

What the expansion could change

If adoption continues, Ezeebit’s model could influence how African merchants think about fees, settlement speeds, and currency stability. By giving merchants an alternative to traditional rails, the startup may introduce more pressure on payment processors to lower costs and increase speed. Stablecoin usage for everyday spending could also grow, especially among users who receive remittances in crypto and prefer to avoid exchange losses.

However, scaling across Africa means dealing with different regulatory environments. Ezeebit’s licensing in South Africa positions it well, but entering Nigeria and Kenya will require strong compliance systems, local partnerships, and constant adaptation to shifting rules around crypto and digital assets.

Still, the company’s approach, wallet-agnostic acceptance, instant hedging, and compliance-first infrastructure, signals a broader trend. As more merchants look for cheaper and faster ways to get paid, stablecoin rails may move from niche to mainstream faster than expected.

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