Cape Town-based travel payments startup TurnStay has secured more than R34 million ($1.9 million) in seed funding to expand its cross-border payments platform across the African tourism market.

The investment round was led by First Circle Capital, with participation from TLCom Capital, Enza Capital, Incisive Ventures, CVVC, and Equitable Ventures.

Founded by fintech entrepreneurs Alon Stern, previously of Prodigy Finance, and James Hedley, co-founder of Quicket, TurnStay specialises in addressing long-standing payment challenges faced by African travel operators, including high card processing fees, failed international transactions, and lengthy settlement periods.

The company’s solution combines a merchant-of-record model with stablecoin settlement, a system it claims can reduce transaction costs by as much as 70% while improving booking conversion rates. Integrated with widely used booking and property management systems, the platform aims to streamline both domestic and international payment flows.

“This funding represents a major milestone in our mission to make global payment infrastructure accessible to African travel businesses,” said Stern.

With the new capital, TurnStay plans to expand into several key African markets while enhancing its payment infrastructure for the tourism sector. According to industry data, tourism sustains over six million jobs across Africa and generates more than R1.8 trillion annually, yet high payment costs remain a persistent barrier for local operators.

TurnStay’s model gives African travel companies greater control by allowing them to settle transactions in South African rand while still accepting international payments. This approach also encourages direct bookings, enabling businesses to avoid the high commission fees typically charged by global online travel agents.

“Our solution consistently delivers cost savings while improving the booking experience for international travellers,” said Hedley.

The company has processed more than R250 million in transactions since securing R5.7 million in pre-seed funding last year. In that time, TurnStay has also signed partnership agreements with several industry players, further strengthening its foothold in the market.

By offering African travel operators access to fintech tools on par with those used by global competitors, the startup positions itself as a viable alternative to traditional payment providers and large booking platforms, an edge it hopes to use to capture a growing share of the continent’s booming tourism economy.