Payless Africa, a Nairobi-based fintech neobank, has been making a bold entrance into Kenya's crowded fintech space over the last six months. Founded in 2024 by Kev Muley, the company is betting that its aggressive marketing strategy and focus on Gen Z users will help it carve out a significant market share.

In a market dominated by M-PESA, a mobile money product that has long defined how people send and receive money, Payless Africa is positioning itself as a cheaper, more flexible alternative to traditional banks. The startup has built a digital platform that helps young Kenyans move money, save, and make payments, blending basic wallet services with savings tools and financial literacy features.

Payless Africa's strategy focuses on young people, who are digital-first, socially connected, and expect services that understand their behavior. However, the company is careful to frame its product as accessible beyond tech-savvy audiences, emphasizing simplicity, low costs, and relatable tools to draw in users who may be new to digital finance but share common frustrations around expensive or fragmented financial services.

While Payless Africa does not yet hold a direct licence from the Central Bank of Kenya (CBK), 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, allowing Payless Africa to focus on validating its model while relying on Webtribe for compliance, onboarding standards, and anti-money laundering checks.

However, operating under another company's licence introduces dependency risk. Any regulatory issue, suspension, or compliance failure at Webtribe could expose Payless Africa to service disruptions or indirect penalties, especially as Kenya tightens fintech oversight. The company plans to approach regulators directly as it grows, with the goal of securing a direct licence.

Beyond its partnership with Webtribe, Payless Africa has signed Memorandums of Understanding (MoU) with three banks, which it 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 behaviors. The collaboration will introduce savings tools, investment products, card services, international money transfers, and credit offerings like overdrafts, all embedded within the Payless Africa app.

Payless Africa earns revenue primarily from transaction fees, keeping costs deliberately low but not entirely free. The neobank offers free peer-to-peer transactions to users under 24 and on transfers below KES 1,000 ($8), encouraging engagement and habit-building early in a user's financial journey. However, this raises a familiar question for digital-first banks: is this revenue model sustainable in the long term?

Payless Africa 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. The company has grown through founder bootstrapping, partnerships with sister companies in media, events, and influencer marketing, but plans to engage investors in 2025 to raise capital for expanding products, embedded financial services, and market reach while keeping control of its direction.

With the Central Bank of Kenya tightening scrutiny over digital lenders and payments, regulatory compliance, competition, and profitability may define whether Payless Africa thrives or fades. The company claims its app has been downloaded over 500,000 times, with 278,000 profiles created, and 270,000 active users. It also claims that users have saved over KES 27 million, with average individual savings at KES 900, and transaction volume to date stands at $20 million.

Whether Payless Africa can challenge the established players and survive the pressures of scaling in a competitive market remains an open question. However, its focus on affordability, relevance, and embedded financial services may build long-term loyalty, particularly as its core users grow older and their financial needs become more complex.