South Africa's MoneyBadger streamlines secure Bitcoin transactions for businesses and customers
MoneyBadger, a South African startup founded by Carel van Wyk, Carl Kritzinger, Ben Blaine, and Brent Petersen, has secured a US$400,000 pre-seed round of funding to expand its network of partners and establish more use cases for bitcoin in more countries [1][3]. The company aims to make bitcoin spendable at scale in Africa and other markets, transforming the digital currency from a purely investment vehicle to being used as "money," as it was originally intended [8].
The funding was raised from VC P1 Ventures, a traditional business finance firm with connections across Africa [7]. MoneyBadger's universal translator app bridges the gap between legacy point-of-sale (POS) systems and Bitcoin payments via a QR code scanner [5].
Currently, MoneyBadger has deployed crypto and bitcoin payments to over 1,600 outlets in South Africa, including all Pick n Pay stores [1]. The startup recently partnered with Peach Payments to enable their merchants to accept bitcoin and other crypto assets, further integrating bitcoin payments into mainstream commerce [2]. It also collaborates with Ecentric, a major payment processor in South Africa, to offer frictionless crypto acceptance for retailers via the OmniHub platform [4].
The company's merchant API supports Lightning Network transactions and all major wallet providers, allowing consumers to scan a QR code at point of sale to trigger a payment from their preferred wallet to the merchant [1]. The merchant is settled in ZAR or bitcoin, depending on the agreement [1].
Before Bitcoin Lightning, enabling bitcoin payments was expensive and unreliable [9]. However, MoneyBadger's prototype, developed in 2022, was tested with Pick n Pay and performed exceptionally well, being super-reliable and faster and cheaper than 'tap-to-pay' using a credit card [6]. The Pick n Pay deal showed that people want to use their bitcoin gains to buy things they need and want an easier way to do it than waiting for their bitcoin to transfer into a bank account before they can spend it [6].
MoneyBadger is in talks with partners who operate throughout Africa and want to enable payments in other markets in Africa [3]. The startup's goal was to raise from a VC that wasn't traditionally a crypto VC, and they chose P1 Ventures for their pragmatic business approach [7].
As major players in the mainstream payments industry are now running pilots, planning pilots, or going into production with MoneyBadger [1], the startup positions itself as a leading player working to mainstream bitcoin as an everyday payment method in South Africa and beyond [1][5]. MoneyBadger's expansion plans focus on scaling bitcoin payment acceptance within South Africa’s retail sector, extending the partner network across Africa and other countries, and integrating with major payment processors and platforms [1][2][4].
References:
- MoneyBadger raises $400,000 pre-seed funding to expand bitcoin payment services in Africa
- MoneyBadger partners with Peach Payments to enable bitcoin payments for merchants
- MoneyBadger eyes expansion into new markets in Africa
- MoneyBadger partners with Ecentric to offer frictionless crypto acceptance for retailers
- MoneyBadger positions itself as a leading player in mainstreaming bitcoin as an everyday payment method
- Pick n Pay deal shows demand for an easier way to spend bitcoin
- MoneyBadger raises funding from VC P1 Ventures for global expansion
- Bitcoin Lightning allows bitcoin to transition from being a purely investment vehicle to being used as "money"
- Before Bitcoin Lightning, enabling bitcoin payments was expensive and unreliable
Investment in fintech startup MoneyBadger, led by VC P1 Ventures, will facilitate expansion of its business in Africa, aiming to transform bitcoin from a purely investment asset to a functional currency used for everyday transactions, leveraging technology to streamline transaction processes at point-of-sale systems. The integration of bitcoin payments into mainstream commerce, including partnerships with Peach Payments, Ecentric, and major payment processors, positions MoneyBadger as a key player in mainstreaming bitcoin as a practical finance tool.
