On Tuesday, October 22, 2024, Nigerian HR tech startup PaidHR unveiled a new feature that allows employees around the world to receive their salaries in 49 different local currencies.
This cross-border payroll solution is part of the company’s larger growth strategy, as it seeks to raise $1.5 million in seed funding to expand operations and enhance this new product.
Founded in 2020, PaidHR has already made significant progress in the HR tech sector, assisting over 200 businesses, including 100 in Africa, in streamlining their human resource functions. The startup processed ₦11.473 billion in salaries in 2023 and aims to double that figure in 2024.
Given the recent 70% devaluation of the Nigerian naira since May 2023, the launch of this cross-border payroll feature is timely for businesses looking to safeguard against economic instability. It is especially beneficial for companies with employees in multiple countries, offering a way to pay salaries in local currencies.
According to CEO Seye Bandele, this innovation was driven by user demand. “We are building HR management with an African context, and some of our users have requested this feature,” he explained. “This has been the roadmap for PaidHR since 2021. The product involves a marriage of HRTech and Fintech.”
The new feature includes a proprietary wallet that allows employees to convert their earnings into their preferred currency, giving them flexibility and control over their income management.
While this move brings PaidHR closer to the fintech sector, the company emphasizes that it remains focused on HR tech. Co-Founder and CTO Lekan Omotosho noted that PaidHR doesn’t hold customer deposits, aligning with regulatory frameworks. Instead, the startup partners with licensed financial institutions to handle transactions and earns transaction fees.
This strategic partnership allows PaidHR to concentrate on its HR tech offerings while incorporating financial services that meet the needs of modern businesses. Product Marketing and Communications Lead Ore Badmus stated, “We are only adding solutions our users have requested to our product.”
With this new feature, PaidHR positions itself to compete with remittance and cross-border payment services like Canza Finance, Cedar Money, and Waza. The company is also planning to expand into three new markets by the second quarter of 2025, bringing its solutions to even more businesses across Africa.
