Billboards splashed across Nairobi. Social media ads with cheeky jabs at rivals. Open criticism of unfair business practices. Viral posts driving conversations online.
Over the last six months, Payless Africa, a Nairobi-based fintech-cum-neobank, has been trying to grab attention in Kenya’s crowded fintech space. Founded in 2024 by Kev Muley, the company wants to grow fast, betting that visibility and aggressive marketing will help it carve out market share. Many startups use this playbook: grow first, chase profitability later.
Kenya’s fintech market is dominated by M-PESA, a mobile money product that has long defined how people send and receive money. Over 200 licenced fintech players also target the same young, urban customers. Yet, despite its scale, M-PESA and similar services often treat payments and financial health as separate experiences. Payless claims to position itself differently to merge these functions in a way that feels more relevant to Generation Z, anyone born between 1995 and 2010.
But what exactly does Payless do?
Payless has built a digital platform to help young Kenyans move money, save, and make payments. The startup blends basic wallet services with savings tools and financial literacy features. It creates an experience that feels easy to use, even for those less familiar with formal banking products.
Neobanks like Payless pitch themselves as a cheaper, more flexible alternative to traditional banks. They thrive on low overheads and tech-driven services and are better suited to the fast-changing demands of younger users.
Payless’ strategy focuses on young people. These users are digital-first, socially connected, and expect services that understand their behaviour. But Payless is careful to frame its product as accessible beyond tech-savvy audiences. Simplicity, low costs, and relatable tools are meant to draw in users who may be new to digital finance but share common frustrations around expensive or fragmented financial services.
“While Gen Z is tech-savvy and forms our core target audience, Payless has broader appeal because it addresses universal pain points in money management,” Derrick Gakuu, Product and Innovation Head, told .
The licencing headache
Kenya’s regulators are tough on fintech and banks, which makes licences difficult to get. Gakuu told that Payless does not yet hold a direct licence from the Central Bank of Kenya (CBK). Instead, it operates under the regulatory cover of Webtribe (Jambopay), a licenced Payment Service Provider (PSP).
This structure was designed to reduce barriers to market entry to allow Payless to focus on validating its model while relying on Webtribe for compliance, onboarding standards, and anti-money laundering checks.
Still, operating under another company’s licence introduces dependency risk. Any regulatory issue, suspension, or compliance failure at Webtribe could expose Payless to service disruptions or indirect penalties, especially as Kenya tightens fintech oversight.
“The Central Bank of Kenya recommended this approach to accelerate market entry, achieve critical mass, and validate the business model before pursuing direct licensing,” Gakuu said.
However, Payless controls product design, customer acquisition, and service delivery. Its partnership with Webtribe enables scale without the immediate pressure of securing a licence, though the company plans to approach regulators directly as it grows.
Working with traditional banks
Beyond this, Payless has signed Memorandums of Understanding (MoU) with three banks, which Payless did not disclose. These partnerships are not just about ticking regulatory boxes but also about co-developing products that align with Gen Z’s financial behaviours.
“Regarding our banking partners, we cannot disclose specific names at this stage, but we are working with established local and regional banks to bring these innovations to life,” Gakuu said.
The collaboration will introduce savings tools, investment products, card services, international money transfers, and credit offerings like overdrafts. Per Payless, the goal is to embed these services inside the Payless app and make them part of daily transactions rather than standalone products.
How does Payless make money?
Payless earns revenue primarily from transaction fees. The neobank keeps costs deliberately low but is not entirely free. Free peer-to-peer transactions are offered to users under 24 and on transfers below KES 1,000 ($8). This is meant to encourage engagement and habit-building early in a user’s financial journey.
But this raises a familiar question for digital-first banks: is this revenue model sustainable in the long term? Global neobanks often struggle to convert high user activity into profit. Payless is betting that future products will offset these thin margins, though this remains risky.
Over time, Payless expects new revenue from financial services like Payless Y and Payless Z, merchant products such as the Woza Merchant App, and digital marketplaces for services like ticketing and bookings.
Payless Y handles daily money tasks like chat-to-pay, automated bills, and group cost-sharing in everyday conversations. Payless Z adds savings, investments, and insurance. Users can access phone protection and experience-based cover and save towards goals through partner banks. These additions will bring commissions, interest earnings, and other transactional income to strengthen its business model.
Kenya has no shortage of neobanks
Competition in this space is intense. Safaricom’s M-PESA remains dominant, while newer entrants like NCBA LOOP, Ecobank-backed Fingo, Branch, and Umba push digital-first banking experiences. Payless sees its advantage in understanding how Gen Z interacts with money by focusing less on traditional banking and more on flexibility.
Payless acknowledges the limits of its model. It does not plan to move into complex corporate or investment banking, since its strength lies in offering embedded financial services that support everyday decisions by helping users save, borrow, insure, and spend without shifting between platforms.
“While our primary focus is on embedded financial services for individuals—savings, cards, insurance, and investments—we see immense value in strategic collaborations,” Gakuu added.
Eyeing venture capital funding
Payless has grown through founder bootstrapping, partnerships with sister companies in media (NRG Radio), events, and influencer marketing to build early traction. Per Gakuu, this allowed the company to test demand, refine its product, and stay in control. Still, scaling in fintech requires more than organic growth.
Payless has not raised angel or VC funding but plans to engage investors in 2025. The focus is to raise capital for expanding products, embedded financial services, and market reach while keeping control of its direction.
But investor sentiment towards neobanks is cooling globally. Many VCs now demand clear paths to profitability before writing cheques. Whether Payless can attract funding in 2025 may depend less on download numbers and more on proving it can turn transactions into sustainable revenue.
“While we’re not actively seeking investment right now, our growth strategy includes preparing for investor engagement by Q1 2025,” Gakuu said.
Payless is betting that its blend of affordability, relevance, and embedded financial services will build long-term loyalty, particularly as its core users grow older and their financial needs become more complex.
Payless claims its app has been downloaded over 500,000 times, with 278,000 profiles created. Of these, 270,000 users are active. It also claims that users have saved over KES 27 million, with average individual savings at KES 900. Transaction volume to date stands at $20 million.
The real test will come when Payless seeks direct licencing or scales into new markets. With the CBK tightening scrutiny over digital lenders and payments, regulatory compliance, competition, and profitability may define whether Payless thrives or fades.
Whether this is enough to challenge the established players or survive the pressures of scaling in a competitive market remains an open question.
