TurnStay Tackles Costly Payment Challenges in Africa’s Booming Tourism Sector

As international travellers increasingly choose African destinations for safaris, luxury experiences and cultural immersion, a significant challenge has emerged: the high cost of processing payments for local businesses.

TurnStay, a South African fintech startup, is addressing this issue by providing payment infrastructure that reduces fees for hotels, safari lodges, tour operators and villa agencies. In the first six months of 2026 alone, TurnStay processed over R1 billion ($60.6 million) in travel payments.

The Hidden Costs of International Payments

While African tourism businesses compete globally for travellers, they often face significantly higher payment processing fees than their counterparts elsewhere. These costs can include:

  • Card network fees (Visa, Mastercard)
  • Foreign exchange spreads
  • Cross-border acquiring costs
  • Traditional banking infrastructure limitations

These expenses can collectively consume 8% or more of booking revenue, eroding margins and reducing the amount of tourism income that remains on the continent.

TurnStay’s Solution: Modern Payment Rails for African Travel

TurnStay combines a merchant-of-record model with digital payment rails to reduce fees to as low as 1.6%. By leveraging technologies like stablecoins for cross-border settlements, the company helps businesses retain more revenue.

“The less merchants pay in fees, the more money stays in Africa,” explains CEO Alon Stern. “That’s the philosophy behind everything we build.”

Unlike traditional systems that rely on complex banking infrastructure, TurnStay uses direct payment rails to move funds faster and at lower cost before settling with merchants.

Expansion Across East and Southern Africa

The company currently serves clients in South Africa, Kenya, Tanzania, Botswana and Mauritius, including luxury hospitality brands like Singita, Londolozi and Safari.com. TurnStay recently raised $2 million in seed funding and is preparing for a Series A round to accelerate its pan-African expansion.

With over R1 billion processed in just six months, TurnStay’s growth reflects both the increasing demand for African travel experiences and the need for more efficient payment solutions that keep greater portions of tourism revenue within the continent.