Kenyan fintech Payd resumes service after FX losses disrupted payouts

Payd, a Kenyan cross-border payments startup, restored its app, WhatsApp chatbot, business platform and application programming interface on September 18 after foreign exchange losses left the company short of the funds needed to settle some customer balances, according to TechCabal. Chief executive Benaiah Wepundi confirmed the restart date in an interview with the publication.

Founded in 2023, Payd lets freelancers, contractors and businesses receive international payments and convert them into local currencies. As of February the company said it served about 30,000 users across Kenya, Nigeria, South Africa and Senegal.

The disruption first became visible in May, when Payd paused some payouts. Customers told TechCabal at the time that they could not complete transfers to Nigeria, and the company initially attributed the problem to app downtime. Posts from customers on social media raised further concerns about failed or delayed transfers, and Payd denied reports that it had shut down.

“Our monitoring did not identify the full effect of the losses early enough. We take responsibility for that,” Wepundi said, according to TechCabal. The company has since overhauled its treasury operations, according to Brand Spur, and ahead of the restart it said existing users would be able to track their balances and choose which accounts would receive settlements.

Payd’s difficulties illustrate a risk in African cross-border payments that can stay hidden from the outside: a company can generate substantial payout volume while still losing money if it fails to match the currencies, timing and cost of funds moving through its system, TechCabal reported. Payd’s liquidity model blends local payment rails with stablecoin settlement across several partners, including Bridge, Noah and Yellow Card, to manage the flow of funds across markets.