Kenyan fintech Payd to resume services after FX losses disrupt customer payouts

Kenyan fintech Payd intends to restart its services on September 18th following foreign exchange (FX) losses that hindered its ability to fulfill customer balances. In May, the company halted payouts due to insufficient funds, prompting a system overhaul. Founded by Benaiah Wepundi in 2023, Payd facilitates international payments for freelancers, contractors, and businesses, converting them into local currencies. By February, the company had served around 30,000 users in Kenya, Nigeria, South Africa, and Senegal.

Payd's experience underscores a lesser-known risk in Africa's cross-border payments market: fintechs can generate substantial revenues while incurring losses due to inadequate currency matching, timing, and fund costs. The company claims it never shut down; customers only faced disruptions and unanswered queries about the issue.

Wepundi assured that Payd would resume operations across its app, WhatsApp chatbot, business platform, and API on September 18. Customers will be able to monitor their balances and select payout accounts during the restart. However, the company's rapid expansion exposed weaknesses in its treasury controls. From September 2025 to May 2026, Payd's monthly payment volume surged from $500,000 to over $3 million, peaking at 52 currencies before decreasing to 35 and now intending to reduce to 13.

Initially relying heavily on US dollars for incoming payments and local currencies for customer payouts, Payd failed to account for the evolving costs of maintaining local currency obligations amid fluctuating exchange rates. The treasury model employed by Payd did not fully consider the disparities between pre-funding and payout exchange rates and the conversion prices charged by payment partners. This oversight led to discrepancies between the funds available and those required to cover payouts.

For instance, a $100 payment might be prefunded at an exchange rate of $1 to 10 local currency units, only to require more local currency upon withdrawal five days later when the rate changed to 1$ to 13 units. Payd lacked a precise system to track these exposures across various currencies, payout dates, and provider-specific rates. The company acknowledges its responsibility for the oversight.