Comprehensive Summarization:
TurnStay, a South African travel payments startup, processed over ZAR1 billion ($61.5 million) in transactions during the first half of 2026, targeting a 70% reduction in payment costs for African merchants. Founded by Alon Stern and James Hedley in 2023, the company specializes in processing card payments in travelers’ home markets before settling funds to African merchants in local currency. This innovative approach addresses cross-border payment challenges prevalent in the tourism sector. TurnStay has raised $2.3 million in funding and is expanding operations across Africa to meet the growing demand for efficient payment solutions in the travel industry.
Key Points:
- TurnStay processed more than ZAR1 billion in transactions in the first half of 2026, achieving a 70% reduction in payment costs for African merchants.
- The startup offers lower fees starting at 1.6%, significantly lower than the industry standard of up to 8% for foreign card payments in Africa.
- TurnStay raised $2.3 million in funding and is expanding operations across Africa to tackle cross-border payment challenges in the tourism sector.
Actionable Takeaways:
- Cost Reduction for African Merchants: TurnStay’s model of processing payments in travelers’ home markets and settling in local currency can significantly reduce payment costs for African merchants. This cost efficiency could enhance the competitiveness of African travel services and encourage more international travelers to choose African destinations, thereby boosting the tourism sector.
- Strategic Expansion Plans: With $2.3 million in funding and plans to expand operations across Africa, TurnStay is well-positioned to address the cross-border payment challenges in the tourism sector. This expansion could lead to increased market penetration and partnerships with travel agencies and airlines, further solidifying TurnStay’s role as a key player in the travel payments landscape in Africa.
- Industry Standard Disruption: By offering fees starting at 1.6%, TurnStay is directly challenging the industry standard of up to 8% for foreign card payments in Africa. This innovation could drive broader industry changes, prompting other payment processors to reconsider their pricing models and potentially leading to wider industry-wide cost reductions in travel payments.
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