In a significant setback for the African startup ecosystem, US-based banking platform Mercury has announced it will cease operations for businesses in 15 African countries, effective August 22, 2024. This marks the second time in two years that the platform has imposed restrictions on its services.
The news has sent shockwaves through the startup community, as many relied on Mercury for seamless cross-border transactions, US dollar accounts, and other financial services essential for growth.
With Mercury pulling out of the African market, startups are now scrambling to find suitable replacements. To assist in this transition, we’ve curated a list of promising African fintech offering similar services:
Here are five 5 African Fintechs that are alternatives to Mercury, and have also similar services
Raenest:
Founded by industry veterans from OPay and Jumia, Raenest has rapidly gained traction with its US bank account offerings for Africans. Initially targeting freelancers and gig workers, the platform has expanded into business banking, providing a compelling alternative for startups.
Verto:
Verto, a London-based fintech, has established a strong presence in Africa with its cross-border payment, foreign exchange, and USD account services. The platform's competitive exchange rates and ability to hold multiple currencies make it an attractive option for businesses managing international finances.
Cleva:
Backed by Y-Combinator, Cleva offers US-based accounts to individuals and businesses in Africa. With a focus on simplicity and affordability, the fintech has quickly onboarded over 20,000 users and processed millions in payments.
Graph:
Techstars-backed Graph provides a robust suite of cross-border banking and expense management tools. Its global payouts, multi-currency accounts, and corporate dollar cards cater to the needs of expanding businesses.
Leatherback:
Authorised by the Financial Conduct Authority, Leatherback specializes in simplifying global trade. While the onboarding process is more rigorous, the platform's regulatory compliance and extensive currency offerings make it a solid choice for businesses seeking a secure and versatile solution.
The Road Ahead
As African startups navigate this period of transition, it's essential to carefully evaluate the features, fees, and security measures offered by these alternative platforms. Diversifying banking partners and implementing robust risk management strategies will be crucial for mitigating future disruptions.
What are your thoughts on the Mercury situation? Which alternative fintech platform do you find most promising for African startups?
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