Payday, a money transfer app that enables Africans abroad to send money back home, is reportedly raising a seed round of $1.5 million to expand its product and engineering team, as well as its operations and licenses. Payday claims to be profitable as of August 2022 and reached 100,000 customers later that year, making money through small transaction fees and margins on foreign exchange transactions. The app has been marketing its virtual cards, which allow people to make payments for foreign transactions, particularly useful in Nigeria where many banks have monthly limits on foreign transactions. Payday's competitors in the global money transfer category offer similar services, but differentiate themselves through branding and exchange rates, and some do not charge fees. While market leaders are emerging, there may be consolidations on the horizon for those that don't become market leaders. Payday declined to comment on the report.

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