South African fintech company Lumepay has raised $6 million in pre-seed funding and officially entered Kenya’s cross-border payments market after receiving regulatory clearance from the Central Bank of Kenya. The expansion marks another step in the company’s plan to make international transactions easier and more efficient for businesses across Africa.
The funding round, which closed at the beginning of 2026, attracted support from founder led angel investors and South African fintech investors. In addition to the $6 million raised, Lumepay secured about $10 million in capital float to provide liquidity for customers making payments across borders.
The company offers payment infrastructure designed to help small and medium sized businesses, large corporations and financial institutions pay overseas suppliers, manage foreign exchange and transfer funds between African markets.
With its entry into Kenya, local businesses now have another option for settling international payments in currencies such as the Chinese yuan, US dollar and Indian rupee. This could be particularly useful for importers and companies that regularly purchase goods and services from suppliers in Asia.
Lumepay Chief Executive Officer Harry Huang explained that the company combines traditional financial systems with digital asset based settlement technology to address some of the difficulties associated with international payments.
According to Huang, the future of cross-border transactions will depend on bringing traditional finance and stablecoins together, supported by sufficient foreign exchange liquidity to meet the needs of real businesses.
He explained that Lumepay was developed around this approach, using a platform that can operate across different payment systems rather than relying on a single method.
International payments have remained a challenge for many African businesses because transactions often pass through several intermediary banks and involve multiple currency conversions. These processes can increase costs and delay payments to overseas suppliers.
For instance, a Kenyan business importing products from China may first need to convert Kenyan shillings into US dollars before the money is converted into yuan and transferred to the manufacturer. Each stage can attract additional charges and create delays before the supplier receives the funds.
Lumepay aims to reduce these complications by bringing foreign exchange services, liquidity management and payment processing together on one platform.
The company has also expanded its digital financial services in recent months. It introduced Lumetrade, a digital asset and stablecoin trading platform, in April 2026, before launching its cross-border payments platform in June.
Lumepay says its services are now available across several African markets, including Nigeria, Ghana, Tanzania, Malawi and Mozambique, as well as the West African and Central African CFA franc zones and Kenya. However, the services and payment options available vary depending on the regulatory arrangements in each country.
Chief Operating Officer Luc Varejes said the funding had helped the company move beyond its initial plans by developing payment infrastructure, securing liquidity arrangements and building partnerships across its target markets.
He noted that Lumepay had established a network of payment partners and systems capable of supporting international transactions. He also highlighted its regulatory position in South Africa and Kenya, alongside partnerships with licensed operators in parts of Francophone West and Central Africa.
Kenya represents an important opportunity for the company because of its established digital payments sector and the large number of businesses involved in international trade.
Importers dealing in electronics, machinery, industrial equipment, textiles and other consumer products frequently need to pay suppliers in foreign currencies. For these businesses, lower transaction costs, competitive exchange rates and predictable payment times can make a significant difference to daily operations and cash flow.
However, Lumepay will still need to demonstrate that its services offer clear financial advantages over existing alternatives. Businesses considering the platform will need to examine the full cost of transactions, including exchange rate margins, transfer charges and any additional fees imposed by intermediary providers.
Regulatory compliance will also remain an important part of the company’s expansion. Lumepay says it received clearance from the Central Bank of Kenya in October, allowing it to launch its payments service in the country.
The company has also outlined its wider regulatory arrangements, which include payment registration in South Africa, registrations in Canada and partnerships with licensed operators in some African markets. However, the precise scope of its Kenyan approval and the responsibilities of the regulated entities involved in individual services should be independently established. Approval for cross-border payments does not automatically mean that every foreign exchange or digital asset activity is covered by the same authorisation.
Lumepay is led by Huang, Varejes and its Chief Legal and Compliance Officer, Tatenda Nhemachena.
The $6 million pre-seed investment is expected to support further development of the company’s payment infrastructure, strengthen its liquidity arrangements and help it expand into additional African markets. The separate $10 million capital float will provide funds to support customer transactions and should not be confused with additional equity raised by the company.
As trade between African businesses and international suppliers continues to grow, demand for faster and more affordable payment services is attracting interest from banks, fintech companies and stablecoin based platforms.
For Lumepay, the challenge will be to prove that combining traditional payment systems with digital asset technology can deliver dependable transactions at competitive rates.
Its performance in Kenya will be an important test. Businesses will want to know exactly how much it costs to pay an overseas supplier, how quickly the money arrives and whether the recipient receives the expected amount.
A practical comparison involving a KSh500,000 payment to a Chinese supplier, for example, could help establish how Lumepay’s service compares with commercial banks and other fintech providers. Such an assessment would need to consider the final amount received, exchange rate margins, transfer fees and settlement time.
Ultimately, Lumepay’s success in Kenya will depend on whether it can provide a more affordable and reliable way for African businesses to pay international suppliers, rather than simply becoming another name in the digital payments market.
