In a surprising move, Mercury Bank recently announced it would terminate the accounts of startups in thirteen African countries by August 22, 2024. This decision has left many African entrepreneurs like myself scrambling to find new banking solutions. When I got the news, I freaked out as I consider myself a global citizen and the services I am able to enjoy with having a Mercury bank account are priceless to me. With the closure of Silicon Valley Bank in 2023 still fresh in memory, the need for reliable financial services is more critical than ever. This article explores seven robust alternatives that can help African startups navigate these challenges and continue to thrive.
1. Raenest – A Reliable Business Banking Solution
Founded in 2021 by Richard Oyome, Victor Alade and Sodruldeen Mustapha, Raenest offers US bank account access for Africans. Initially designed for freelancers and gig workers, Raenest has now expanded to include a business banking division in March 2024. My personal experience with Raenest has been exceptional. The platform is efficient, reliable, and ideal for business banking needs. Raenest’s counterpart, Geepay, caters to individual users like myself. I have been able to successfully transfer money from my Mercury Bank account to Geepay without any issues, demonstrating the seamless functionality of both services. I have been able to setup a virtual card and move funds to it. I am now a proud owner of Wells Fargo bank account
2. Leatherback – Simplifying Global Trade
Leatherback, authorized by the Financial Conduct Authority as an Electronic Money Institution, streamlines global trade for individuals and businesses. The platform supports seamless cross-border transactions and operates in over 15 countries. Businesses can set up accounts in 18 currencies, but must provide comprehensive documentation to verify authenticity. This stringent regulatory compliance ensures a secure financial environment for all users.
3. Wise – Transparent Multi-Currency Accounts
Previously known as TransferWise, Wise offers multi-currency accounts and cost-effective international transfers. The platform allows businesses to hold and convert between various currencies, making it a versatile solution for startups with global operations. Wise is praised for its transparent fee structure and competitive exchange rates, making it a reliable and user-friendly banking alternative.
4. Verto – Cross-Border Payment Solutions
Verto, a London-based fintech, provides businesses with cross-border payment, foreign exchange (FX), and banking services. Supporting up to 50 local currencies, including USD, GBP, NGN, and KES, Verto allows businesses to manage their funds effectively. Verto offers competitive FX rates with minimal markups, making it a cost-effective solution for currency management. Recently, Verto introduced USD accounts with securely held funds, making it a dependable choice for African startups.
5. Cleva – Easy Access to US-Based Accounts
Cleva, launched by Tolu Alabi and Philip Abel in 2023, is a Y-Combinator-backed fintech offering US-based accounts to individuals and companies in Africa. Users can open USD accounts by providing their Bank Verification Number (BVN) and a government-issued ID. Cleva has grown rapidly, onboarding over 20,000 users and processing significant monthly payments. Registered with the Financial Crimes Enforcement Network (FinCEN) as a Money Service Business (MSB), Cleva ensures compliance and security in its operations.
6. Graph – Global Banking and Expense Management
Techstars-backed Graph specializes in cross-border banking and expense management solutions for businesses aiming for global expansion. Its services include global payouts, multi-currency accounts, and corporate dollar cards. Graph’s global payout feature supports bulk payments in USD, EUR, and GBP, making it an ideal solution for companies managing international transactions.
7. Paystack – Seamless Payment Integration
Not really a fit but adding just because Paystack offers a robust bouquet of payment solutions for African startups. Paystack, a Nigerian fintech company, offers a comprehensive suite of payment solutions for businesses across Africa. It allows businesses to accept payments via credit card, debit card, and bank transfers, supporting multiple currencies. Paystack’s seamless integration with various e-commerce platforms and its user-friendly interface make it a popular choice for startups looking to streamline their payment processes.
Conclusion
As Mercury Bank withdraws its services, African startups must adapt quickly and explore new financial partnerships. Understanding the evolving regulatory landscape and identifying reliable banking solutions is crucial for maintaining operational stability and achieving long-term success. Platforms like Raenest, Leatherback, Wise, Verto, Cleva, Graph, and Paystack provide robust alternatives to ensure that African startups can continue to thrive amidst these changes.
