Payd, the Kenyan payments startup founded in 2023 by Benaiah Wepundi, is gearing up to resume operations after a months-long suspension triggered by foreign exchange complications. The platform, which helps freelancers, contractors, and businesses convert international payments into local currencies, recently announced a restart date of September 18 and promises users the ability to track existing balances and select settlement accounts.

What Happened

The service disruption began in May when Payd paused payouts, leaving customers unable to complete transfers—particularly to Nigeria. The root cause traces to rapid growth that exposed gaps in the company’s treasury controls. Monthly payment volume surged from roughly $500,000 in September 2025 to over $3 million by April and May 2026, forcing the startup to support 52 currencies at its peak before scaling back to 35 and aiming for just 13. The model relied on incoming US dollars and local currency payouts, but the company failed to adequately track how exchange rate shifts eroded the funds set aside for customers. By the time the losses were fully understood, accumulated FX gaps had left some balances underfunded. Payd has since denied shutting down entirely, even as customers took to X to report failed or delayed transfers without clear explanations.

Why This Matters

Payd’s struggle highlights a less visible but critical risk for African fintechs whose models depend on moving money across currencies. Cross-border revenue grows with transaction volume, but the economics also expose firms to liquidity, settlement, and FX risks between the moment funds enter a system and the moment they leave. The case underscores why proper treasury management, real-time rate tracking, currency mismatch controls are essential for any platform handling international payouts. It also shows how quickly user trust can erode when transparency lags behind operational hiccups.

Key Takeaways

  • Payd is reducing the number of supported currencies from 35 to 13 to simplify treasury tracking.
  • The company will maintain separate records for each customer’s balance and reconcile them against held funds rather than relying on a shared pool.
  • It will source currency at payout time through local partners rather than prefunding large amounts across multiple markets, thereby reducing FX exposure.
  • The startup has cut staff from eight to six, with four full-time co-founders and two part-time engineers, and is prioritizing revenue-funded operations over immediate fundraising.
  • Payd also explored strategic partnerships, mergers, or acquisitions over the past six months, with settling customer balances and restoring operational stability as top priorities.

Conclusion

Payd’s restart on September 18 marks a critical test of whether its revised treasury model can prevent the same currency mismatches that triggered the crisis. The company’s ability to manage growing payment volumes without repeating past errors will determine if it can rebuild user trust and attract the capital needed for regulated expansion. For the broader fintech sector, the episode serves as a cautionary tale about the hidden costs of rapid cross-border growth and the necessity of robust financial controls.