Discover how TurnStay, a South African fintech, raised $300,000 from Silicon Valley and New York investors to transform payment solutions in African travel and tourism. Learn how their innovative approach reduces transaction costs and enhances booking experiences
TurnStay.com, a South African fintech focused on travel, has successfully raised $300,000 (approximately R5.4 million) in funding from prominent investors based in Silicon Valley and New York: DFS Lab and DCG. This investment marks a significant milestone for TurnStay, enabling the company to expand its operations across Africa and capitalize on its existing market momentum.
Co-founded by experienced entrepreneurs Alon Stern and James Hedley, TurnStay addresses the high cost of transactions for African merchants and platforms in the travel and tourism sectors. Leveraging strategies akin to those employed by leading global booking companies, TurnStay aims to streamline payment processes and drive substantial cost savings for hospitality businesses throughout the continent.
Stephen Deng, General Partner at DFS Lab, commended TurnStay for its innovative approach, emphasizing the potential for significant bottom-line improvements in the African travel and tourism industry. He noted that TurnStay’s localized payment solutions, which allow clients to transact in their home currencies using familiar payment methods, have already demonstrated impressive results. According to CEO Alon Stern, these solutions have reduced costs for clients by up to 70% and significantly minimized transaction failures, thereby boosting sales conversion rates.
In many cases within the travel industry, payment fees imposed by online travel agencies add considerable expenses. For instance, while a European customer booking a South African hotel through Booking.com incurs a minimal card fee when billed in Euros, using African payment processors can result in fees exceeding 7%. This discrepancy can make payment fees for African hotels up to 20 times higher than those faced by counterparts using global platforms like Booking.com.
TurnStay addresses this disparity by leveraging a robust network of compliant partners to streamline international payments for hotels, ensuring both efficiency and security. By integrating seamlessly with leading booking engine providers such as Benson Software, TurnStay offers merchants lower card fees, a smoother checkout experience, and increased direct bookings, empowering them to compete more effectively with online travel agencies.
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