Miranda Perumal, CEO of Scale, views the $700,000 investment as a validation of the company’s value proposition and its dedication to advancing African fintechs. “This funding is a testament to our venture’s commitment to propelling African fintechs to new heights,” she said.
A Year of Growth and Innovation
Scale was co-founded just a year ago by Barbara Woollams and Miranda Perumal. The company operates as an issuer orchestration platform, simplifying the card issuance process for businesses across Africa. Scale’s infrastructure allows fintechs and corporations to issue and manage cards seamlessly, filling a critical gap in the continent’s payments ecosystem.
Strategic Partnerships and Infrastructure-as-a-Service (IaaS)
Since its inception, Scale has strategically built partnerships with investors, banking institutions, networks, and payment technology providers. These collaborations have positioned the startup as a key player in card issuing orchestration and Infrastructure-as-a-Service (IaaS) within Africa’s fintech landscape.
Opportunity in Africa’s Growing Fintech Market
With Africa’s fintech market projected to reach $65 billion by 2030, and card issuance platforms expected to handle 35% of all card-based transactions by 2029, Scale plans to capitalize on these trends. Its goal is to offer seamless, sustainable solutions tailored to the specific needs of businesses and their customers across the continent.
Challenges in Africa’s Payments Ecosystem
Selma Ribica of First Circle Capital highlights that Africa has the lowest payment card penetration per capita globally. This presents unique challenges for African fintechs looking to enhance their product offerings with card services. Ribica explains, “It takes approximately 18 months for any business to launch a card product, if achievable at all. This complex process requires technical expertise and strong partnerships across the payments ecosystem.”
Union54’s Impact on African Fintech
A recent example of these challenges is Zambian fintech Union54, which ceased operations after an attempted $1.2 billion chargeback fraud. African startups that relied on Union54’s virtual card-issuing API have been left scrambling for alternatives, underscoring the need for reliable, scalable card issuance platforms like Scale.
Scale’s Card-as-a-Service Solution
Scale’s Card-as-a-Service platform addresses these issues head-on. Offering a pre-approved card management product with all the typical card features, Scale allows fintechs and corporations to launch their own cards in a matter of weeks. Ribica explains, “Customers can plug into this product and launch a card within a few weeks, reducing time to revenue for Scale’s clients.”
With its streamlined process and focus on addressing Africa’s unique fintech challenges, Scale is poised to make a significant impact across the continent.
Source: TechPoint