Kenyan payments startup Payd plans to resume its payment services after foreign-exchange losses disrupted some customer payouts and affected funds available to cover certain customer balances.

Table Of Content

FX losses affected payouts
New treasury approach
Business background

Founder Benaiah Wepundi said the company intends to restart its app, WhatsApp chatbot, business platform and API on Friday, September 18. Payd also plans to let users review existing balances and select the accounts where future settlements should be paid.

FX losses affected payouts

Payd paused some payouts around May after losses accumulated as exchange rates shifted between the time payments were funded and when customers were paid. Customers reported failed or delayed transfers, including transfers to Nigeria. Payd attributed at least one reported disruption to downtime on its app.

Wepundi said the company’s previous treasury model did not fully account for movements between the US dollar and local currencies, pre-funding costs, or conversion charges imposed by payment providers. Payd relied heavily on US dollars for incoming payments while making many customer payouts in local currencies.

“At times, the dollar cost of making those payouts was higher than the dollar amount received to fund them,” Wepundi said.

He added that Payd did not accurately track changes between the exchange rates offered on its platform and those available from its providers. “Our monitoring did not identify the full effect of the losses early enough. We take responsibility for that,” he said.

Payd’s monthly payment volume rose from about $500,000 in September 2025 to more than $3 million in April and May. Wepundi said the fee structure was not the main source of the losses, identifying treasury management as the larger problem.

New treasury approach

As part of its planned restart, Payd intends to reduce the number of supported currencies to 13. The company had supported 52 currencies at its peak before reducing that figure to 35.

Under the revised model, Payd plans to keep a separate record of each customer’s balance and reconcile those balances against funds held for settlement obligations. It also plans to work with local partners to source currencies when payouts are due instead of holding large amounts of local currency in advance.

“To make the model sustainable, we needed fewer supported currencies, access to local funds when a payout was due, and closer checks on exchange rates and the actual cost of each payment,” Wepundi said.

The company has not disclosed the size of the customer deficit or how many users were affected. Payd plans to use revenue to fund day-to-day operations and apply what remains to the customer deficit over the next six months.

Business background

Founded by Wepundi in 2023, Payd enables freelancers, contractors and businesses to receive international payments and convert them into local currencies. The company said it served about 30,000 users across Kenya, Nigeria, South Africa and Senegal as of February.

Payd generates revenue from transaction fees, foreign-exchange margins, APIs and bulk payments. Its partnership with Noah enabled the company to embed stablecoin-based payment rails, while its website says regulated financial services are provided through licensed payment providers and virtual asset service providers.

The startup reduced its team from eight people to six earlier in the year. Wepundi said Payd secured about $110,000 toward a pre-seed round across 2025 and 2026 but did not complete the raise. Total investor funding and non-equity support reached $166,000, according to figures he provided.

Payd is also considering strategic partnerships, additional funding and possible mergers or acquisitions. Wepundi said those discussions remain ongoing. The company plans to continue working with regulated partners while it restores financial and operational stability, and may later seek funding for its own regulatory approvals and further expansion.

Payd has announced the planned restart, but the resumption of services has not been independently verified.