Waza, a B2B payments startup supported by Y Combinator, is channeling its recent $8 million funding into the launch of Lync, a banking solution aimed at transforming international transactions for African enterprises.
Lync enables businesses to receive and send payments across more than 100 countries, accommodating currencies such as USD, EUR, GBP, NGN, and stablecoins.
Unlike traditional wallet-based systems where transactions are processed under the company’s name, Lync provides full banking access, allowing funds to be processed directly through the businesses’ own accounts. This direct approach simplifies payment reconciliation and enhances transparency.
The introduction of Lync is particularly timely for African startups, especially in light of recent developments. In July 2024, Mercury, a U.S.-based fintech company, announced the closure of accounts for startups in 13 African countries, including Nigeria, due to internal compliance changes.
This decision left many businesses in a challenging position, seeking reliable alternatives for cross-border transactions. Lync steps in to fill this void by offering a dependable and cost-effective solution for startups navigating the evolving financial landscape.
One of Lync’s notable advantages is its competitive transaction fees. Leveraging its extensive experience in fintech, Waza negotiates favorable foreign exchange rates and maintains control over its payment infrastructure.
This results in reduced transaction costs and quicker settlement times compared to other providers. Additionally, Waza plans to integrate trade financing services into the Lync platform, including pre-shipment and invoice financing, tailored to businesses engaged in international trade.
As the need for robust financial solutions continues to grow, Waza’s strategic investment in Lync demonstrates its commitment to empowering African businesses. By addressing critical challenges such as compliance, liquidity, and cost efficiency, Lync is poised to become a significant player in the African fintech ecosystem.
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