There’s a significant shift in Nigeria’s fintech scene as Bitmama Inc., a blockchain payments platform, confirms its acquisition of Payday, a virtual card service provider.

This move arrives just nine months after Payday announced its $3 million seed round and three months following its exploration of sale options. Through Bitmama’s Changera, a cross-border payments product, this acquisition signifies a marked shift from previous speculations, including a potential acquisition by the lead investor, Moniepoint. Changera is set to bolster its blockchain payment platform by acquiring Payday’s entire customer base.

Although the financial specifics of the deal remain undisclosed, a source close to the matter revealed that acquisition talks commenced only a few weeks ago and are around “85% complete.” Another source suggests it’s an all-stock deal valued at “millions of dollars.”

Changera, launched in 2021, is preparing to absorb several key personnel from Payday across departments like marketing, customer service, and engineering. This integration has already begun, with some Payday employees transitioning to Changera. The integration of Payday CEO Favour Ori into Bitmama’s team remains uncertain due to Bitmama’s established leadership and robust technical team, indicating a potential departure.

For Payday’s over 300,000 customers now under Changera’s wing, no significant changes are expected. Bitmama intends to maintain the Payday brand under Changera’s broader umbrella, fortified by its stablecoin infrastructure. This integration aims to resolve the challenges Payday faced due to third-party dependencies, potentially enhancing customer experience and service reliability.

Bitmama’s management highlights that Payday’s brand will continue to operate within Changera, leveraging its stablecoin infrastructure. This move aims to address Payday’s previous operational challenges, including industry-wide fraud issues, Mastercard service disruptions, and team member departures in July 2023.

The acquisition promises Changera customers an expanded range of services, integrating Payday’s digital payment solutions. Initial plans suggest no immediate changes in fee structures or service terms for Payday customers. However, customers can expect an evolving suite of services and possible new features as the integration progresses.

Following this acquisition, Bitmama is gearing up for an ambitious roadmap, focusing on developing a solution to improve FX transactions for African businesses. Scheduled for launch in Q1 2024, this solution aims to facilitate smoother B2B cross-border financial interactions, addressing a critical market need.

Bitmama’s acquisition of Payday mirrors a broader trend in the fintech industry of strategic consolidations, aligning with similar acquisitions like Chaka by Risevest in September 2023. This trend indicates fintech companies increasingly seeking strategic partnerships and acquisitions to scale operations and overcome market challenges.