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MoneyHash raises $4.5M for its payment orchestration platform serving merchants in MENA

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The payment landscape in the Middle East and Africa (MEA) region is marked by significant fragmentation, with numerous payment providers and methods in each country, evolving regulations and diverse customer preferences. This complexity is further compounded by challenges such as payment fraud, low checkout conversion rates and high transaction failure rates.

Although the COVID-19 pandemic accelerated the adoption of digital payments in the region, infrastructure development remains inadequate. Payment failure rates are three times higher in the MEA region than the global average, and fraud rates and cart abandonment exceed those of other regions by more than 20%. This presents a challenge for merchants, who often perceive payments as a cost and risk center rather than a strategic enabler.

Payment orchestration platforms streamline payment processes for merchants through unified payment APIs. Egyptian fintech MoneyHash, one of such in Africa and the Middle East, has raised $4.5 million in seed investment, money it plans to use to further invest in its technology and growth across the region. This comes two years after the startup secured $3.5 million in pre-seed.

Nader Abdelrazik, co-founder and CEO of MoneyHash, highlights that 10% of all payments processed in the MEA region are digital, placing MoneyHash uniquely for a growth phase that the region will inevitably experience over the next decade. However, navigating this burgeoning payments market will demand patience and a commitment to continuous learning.

As merchants or companies launch their platforms, they often start by collaborating with one or two payment processing providers. As their operations grow and expand into multiple regions, they onboard additional payment providers to meet their evolving needs. However, integrating different payment stacks presents significant challenges. Besides the operational inefficiencies and technical complexities, in-house tech teams may take several weeks to complete these integrations. In Africa and the Middle East, these challenges are amplified by variations in payment methods, currencies and the isolation between countries.

MoneyHash payment integration catalogue. Image Credits: MoneyHash

MoneyHash’s product includes a unified API to integrate pay-in and pay-out rails, a fully customizable checkout experience, transaction routing capabilities with fraud and failure rate optimizers and a centralized transaction reporting hub. This is complemented by tools enabling various use cases such as virtual wallets, subscription management and payment links. Fintechs such as Revio, Stitch, Credrails and Recital are similar players in the payment orchestration space.

In an email interview with TechCrunch, Abdelrazik shared insights into MoneyHash’s collaboration with merchants over the last four years. For one, he claims that payment failure rates across the region vary significantly, and relying solely on averages can be misleading. While the typical figures are around three out of 10 payments failing on average, the reality differs widely among businesses, he said. For some, it may be as low as one out of 10, while for others, it could be as high as five or six out of 10. Additionally, these figures do not include customers who abandon the checkout process voluntarily before making a payment. The CEO also noted that most of its customers don’t know much about the complexity of payments and, many times, are not aware that most leakages they have in payments are fixable.

Furthermore, merchants are expanding much faster than their partner payment service providers (PSPs). These PSPs operate under stringent regulations, making the rollout of new products and customizations slower than the merchants’ growth trajectory. As a result, MoneyHash has intensified its collaboration with PSPs, particularly those catering to enterprises and prioritizing customer requirements.

“Businesses appreciate the large network of integration we have not just for coverage but for expertise. When they know that we executed all these integrations in-house, they appreciate the team’s expertise and depth of knowledge and leverage our team to navigate difficult questions in payments. They know that working with us makes them future-proof,” noted Abdelrazik, who founded MoneyHash with Mustafa Eid.

“That means team expertise is key for us. Most of the time, we hire exclusively with payments and/or tech backgrounds, even in non-technical positions. We saw massive effectiveness in building a team where customers trust their knowledge and expertise in something specialized and critical like payments.”

Following a beta launch in 2022, which garnered the participation of key regional players like Foodics, Rain and Tamatem, MoneyHash introduced its enterprise suite last October, targeting large enterprises. Over the past year, the fintech, which integrates with various payment gateways and processors, including Checkout, Stripe, Ayden, Amazon Pay, Tap and ValU, claimed to have expanded its network of integrations, tripled its revenue and increased its processing volume by 3,000%.

At present, MoneyHash boasts 50 active paying customers. It does not offer free tiers; most customers accessing its sandbox without payment are potential clients in the assessment stage, numbering over 100. The payment orchestration platform levies a combination of SaaS and transaction fees, commencing at $500 + 0.4%. SaaS fees increase while transaction fees decrease significantly for large enterprises due to volume, Abdelrazik explained.

MoneyHash’s seed round was co-led by COTU Ventures and Sukna Ventures, with participation from RZM Investment, Dubai Future District Fund, VentureFriends, Tom Preston-Werner (GitHub’s founder and early Stripe investor) and a group of strategic investors and operators.

Speaking on the investment, Amir Farha, general partner at COTU, said his firm believes that the full potential of digital payments in MEA is yet to be realized and MoneyHash’s platform can catalyze the growth of digital payments across the region, enabling both global and local merchants to tap into new revenue streams. “We are thrilled to renew our support to a team that has consistently demonstrated superior execution, not just in securing top mid-market and enterprise customers, but also in expanding value across the entire chain, even under challenging market conditions,” he added.



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NASA To Make Major Announcement On Its Ambitious Mars Sample Return Mission Today; Watch Live

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NASA is hosting a press conference on April 15 for a big announcement regarding its Mars Sample Return Mission. The agency said that the speakers will discuss the next steps of the mission aimed at retrieving samples collected by the Perseverance rover on Mars at 10:30 pm IST. The speakers include NASA Administrator, Bill Nelson and Associate Administrator of the Science Mission Directorate, Nicky Fox.

You can watch the teleconference live at NASA TV and its official website here. The discussion will be based on the report by the Independent Review Board which was set up in 2023 to evaluate the technical, cost, and schedule plans prior to confirmation of the mission’s design.

ALSO SEE: NASA Shares Views Of Perseverance Rover’s Sample Collection In Latest Milestone On Mars

The Mars sample return program, apart from its complexities, has a major problem to deal with – a supposedly ‘unrealistic’ budget. Ever since its landing in the Jezero crater on Mars, the Perseverance rover has collected two dozen soil and rock samples which are waiting to be shipped to Earth early next decade.

The samples are being collected because scientists believe they might have signs of ancient life on the red planet since it used to have oceans billions of years ago.

According to NASA’s plan, it will send a lander with a rocket to Mars which will transfer the samples to an orbiter built by ESA. This orbiter will then send the samples back to Earth. All this is expected to cost between $8 to $11 billion, the review board said in its report released last September. In the upcoming announcement, NASA might clear the air regarding the feasibility of the mission and if it is worth pursuing.

ALSO SEE: What Does A Solar Eclipse On Mars Look Like? NASA Answers With Breathtaking Views





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Mess Created By NASA Will Be Inspected By ESA’s Hera Mission; Here’s All About It

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The European Space Agency (ESA) is gearing up for an ambitious mission called Hera, set to launch in October 2024. The mission’s target will be Dimorphos, an asteroid orbiting the larger space rock Didymos.

Dimorphos gained international attention when it became the subject of NASA’s Double Asteroid Redirection Test (DART) mission. On September 26, 2022, NASA’s spacecraft intentionally collided with Dimorphos to test whether altering its orbit was a viable method of planetary defense.

Now, ESA’s Hera mission is poised to rendezvous with Dimorphos in 2026, building on the groundwork laid by DART. The objectives are ambitious: Hera will delve into the Didymos binary asteroid system, conducting the very first assessment of its internal properties. Additionally, it will meticulously analyse the aftermath of DART’s kinetic impactor test, including studying the crater left behind by the collision.

Hera represents a significant milestone in asteroid deflection technology, paving the way for future planetary defense strategies. By conducting a detailed post-impact survey of Dimorphos, Hera aims to transform the DART mission into a well-understood and repeatable defense technique.

ALSO SEE: NASA’s DART Mission’s Second Observer Captures Unsettling Images Of An Asteroid Crash

What makes Hera even more groundbreaking is its role as humankind’s first probe to rendezvous with a binary asteroid system. It will also be armed with innovative technologies, including autonomous navigation and low-gravity proximity operations.

Using ground-based telescopes, scientists know that DART changed Dimorphos’s velocity but they need a close-up inspection to determine the change in its mass. The HERA mission also includes two cubesats – Milani and Juventas – that will collectively investigate Dimorphos’s composition and change in its properties.

NASA ruled the DART mission a success after the spacecraft was able to change Dimorphos’s orbit around Didymos by 33 minutes. Scientists believe that this technology could one day help us deflect a planet-killing asteroid if one heads toward Earth someday.

ALSO SEE: Collision Of NASA’s DART With Asteroid Dimorphos Changed Its Shape; Finding Excites Scientists





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Unexpected Discovery In A Nebula 3,800 Light-Years Away Leaves Astronomers Surprised

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Astronomers peering into the depths of space have stumbled upon a celestial spectacle unlike any other – a stellar pair locked in a cosmic dance, surrounded by a mesmerizing cloud of gas and dust. But what sets this duo, dubbed HD 148937, apart from the stellar crowd is a remarkable tale of cosmic collision and rebirth.

Located a staggering 3800 light-years away in the Norma constellation, HD 148937 is home to two stars of immense magnitude, each boasting a mass far surpassing that of our Sun.

Yet, upon closer inspection, astronomers were met with a perplexing revelation – these stars, once thought to be twins, harbor striking differences. One star appears 1.5 million years younger and inexplicably magnetic, while its counterpart bears the marks of age and lacks magnetic allure.

Utilizing data collected over nine years from cutting-edge instruments like PIONIER, GRAVITY, and FEROS, astronomers uncovered a violent history. The evidence pointed to a tumultuous past, wherein three stars once roamed the system, until two stars collided, birthing the stunning nebula that now envelops HD 148937.

ALSO SEE: NASA’s Hubble Telescope Captures ‘Fierce And Fabulous’ Tarantula Nebula Brimming With Baby Stars

“The two inner stars merged in a violent manner, creating a magnetic star and throwing out some material, which created the nebula,” professor Hugues Sana, lead investigator explained in an official statement.

This cosmic ballet not only reshaped the system’s destiny but also shed light on a longstanding mystery in astronomy – the origin of magnetic fields in massive stars. While magnetic fields are common in stars like our Sun, their presence in more massive counterparts has long puzzled astronomers. The discovery of HD 148937 provides compelling evidence that such magnetic fields can arise from stellar mergers, a phenomenon observed only in theory until now.

“Magnetism in massive stars isn’t expected to last very long compared to the lifetime of the star, so it seems we have observed this rare event very soon after it happened,” said Abigail Frost, lead author of the new paper published in the journal Science.

ALSO SEE: ESO’s Very Large Telescope Captures ‘Gloomy Portrait’ Of Cone Nebula, A Staggering Star Factory





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