From August 22, 2024, startups from 15 African countries will be unable to transact on Mercury, a US-based startup that provides banking services for more than 100,000 businesses globally.
The startup made this known in an email to businesses from the affected countries. This is the second time in two years that the startup has restricted activities on its platform.
Following these new developments, African startups with accounts in Mercury will need alternatives to aid their financial operations.
We’ve compiled a list of five African startups that provide similar services.
Raenest
Founded in 2021 by former OPay and Jumia employees, Victor Alade, Richard Oyome, and Sodruldeen Mustapha, Raenest provides access to a US bank account for Africans. Although it began with a focus on freelancers and gig workers, it launched a business banking division in March 2024 and has quickly garnered traction among users.
Verto
Verto is a London-based fintech company that offers businesses access to cross-border payment, foreign exchange (FX), and banking services. A year ago, it launched USD accounts that see funds deposited held in protected accounts.
The Y-Combinator-backed fintech enables businesses to receive and hold up to 50 local currencies including USD, GBP, NGN and KES.
It also offers access to competitive foreign exchange rates with markups of less than 1% making it cheaper for companies to manage their currencies.
Cleva
Founded by Tolu Alabi (CEO) and Philip Abel (CTO) in 2023, Cleva is another Y-Combinator-backed fintech offering US-based accounts to individuals and companies in Africa.
Users can open USD accounts when they provide their Bank Verification Number (BVN) and a government-issued ID. Opening an account with the fintech is free without monthly fees. However, it says users won’t be charged more than $20 for any deposit received.
The fintech is registered as a Money Service Business (MSB) with the United States’ Financial Crimes Enforcement Network (FinCEN). It recently raised $1.5 million in pre-seed funding.
Overtime, Cleva has onboarded over 20,000 users and processed over $1 million monthly payments for its Nigerian users.
Graph
Techstars-backed Graph offers cross-border banking and expense management solutions to businesses aiming for global expansion. It currently offers solutions such as global payouts, multiple currency accounts, and corporate dollar cards. Its global payout feature enables bulk payments in US dollars (USD), euros (EUR), and pounds (GBP).
Leatherback
Authorised by the Financial Conduct Authority as an Electronic Money Institution, Leatherback is a fintech company that simplifies global trade for both individuals and businesses.
Leatherback provides a platform for seamless cross-border transactions. It is regulated in five countries, and trades in over 15 countries. Setting up an account on the platform requires more than uploading valid IDs and address verification. Businesses will also have to provide further documentation to validate their authenticity to be able to open accounts in 18 currencies.
