In recent years, the Nigerian fintech industry has witnessed an upsurge in the emergence of various startups that offer financial services to individuals and businesses. While many of these startups have been able to make a positive impact on the financial landscape, some others have been accused of fraudulent activities. One such fintech startup that has come under scrutiny is ‘Payday’.
Payday may be operating a Ponzi scheme that defrauds unsuspecting Nigerians and Africans of their hard-earned money. The manner of its operation could be likened to that of ‘MMM and Racksterli’ as it follows a similar pattern to the infamous Ponzi schemes that have defrauded many Nigerians in the past.
A quick reference to a user experience suggested that “I have never seen a platform advertise so massively and publicly but scam its users privately, and block them personally from messaging their support…”
Let’s assume Payday, though not yet, is an emerging new Ponzi scheme about to collapse and when it does, it will become one and then like me, you could be free to call it a Ponzi scheme.
Why Payday is a Scam and an Emerging Ponzi Scheme
The background of Payday’s CEOs, Favour Ori and Chidi Nwaogu could be called into question as found in our investigation. The contradiction arises on who among them, could be the real CEO of Payday.
Payday, Talent Match Inc.’s parent firm has also been traced. Although it was established in some cases that the company was founded in Rwanda by a group of students, another source linked its founders to a Nigerian entrepreneur. In this regard, Favour Ori and Dr Rex Idaminabo were verified to have founded Talent Match Inc.
There have been contradictions regarding the identity of Payday’s Chief Operating Officer (COO). While some sources have identified Chioma Okotcha as the COO, others have stated that Yvonne Obike holds this position. The lack of clarity surrounding the leadership of Payday is a cause for concern and raises questions about the company’s transparency and credibility.
In short, the whole of addresses provided by Payday on their website has been confirmed to be fake. According to a user, “the addresses found on the Payday site are all fake, and untraceable, according to Google, the locations don’t have offices like Payday in any of the listed regions (Rwanda, Canada, USA and U.K). So it becomes impossible to trace them, no physical address and this scam continue to go viral and around the country Nigeria, with Payday paying advertisers like MR Macaroni.”
On one hand, Payday has been marketed as a neobank that offers virtual dollar cards and other similar services to connect Africans with the world at large. The company has also secured significant funding from investors and has been featured in various tech publications, highlighting its potential to disrupt the financial sector in Nigeria and beyond.
However, there have been reports of customers having their accounts blocked, funds inaccessible, and customer support channels unresponsive, which raises concerns about the legitimacy of the platform. These reports have led us to draw similarities between Payday and previous Ponzi schemes in Nigeria such as MMM and Racksterli.
Users Report Blocked Accounts, Inaccessible Funds, and Poor Customer Service
Many users of the platform have shared their experiences, and unfortunately, most of these experiences are negative. Customers have complained about various issues ranging from blocked accounts, inaccessible funds, and poor customer service, among others. Some users have reported that after making deposits, their accounts were taken down without any prior notice or explanation, making it impossible for them to access their funds.
A user says, “Good evening @favourori_ @ourpaydayHQ. Wire transfer was done to my dollar account in the past four working days and it’s yet to reflect on my dollar account I have all screenshots of the payment receipt with me here. Please kindly look into it.”
One of the most significant complaints from users is the lack of response from Payday’s customer support. Users have reported trying to contact the platform through various channels, including email, Twitter, Instagram, Facebook, and in-app messaging, but with no response. Some users have claimed that after sending multiple messages, their accounts were blocked from contacting Payday’s support team. This lack of response has led to frustration and anxiety for many users who have funds locked up in Payday’s platform.
“I know people whose funds are with payday over months, and every day I cry on Twitter, they message me also crying and seeking solutions to their locked accounts and funds with payday for months. A refund policy takes at most 1-7 working days to refund, but with payday, if you keep quiet it’s gone forever, and even crying out, you get blocked, and have no communication channel to access your money.”
Another issue that has been reported by customers is the delay in the processing of transactions. Some users have reported waiting for several days for their transactions to reflect in their accounts, which has caused financial strain for many who depend on these funds. Others have reported difficulties in funding their accounts, with transactions failing to go through despite multiple attempts.
These issues have led to a lot of distrust and scepticism towards Payday, with many users expressing their regret for using the platform. Some users have warned others to stay away from Payday, citing their negative experiences as evidence of fraudulent activities.
Payday Could Be a Potential Money Laundering Scheme
Payday is now suspected of transforming into a potentially lucrative money laundering operation. Our investigation has uncovered that the company’s leadership is actively working to erase its digital footprint, raising concerns about the safety and regulation of the fintech industry in Nigeria and Africa.
Recent evidence suggests that Payday is taking significant steps to obscure its activities. The community Telegram account associated with the company has been deleted, and the individual purported to be the current CEO has privatized all of his social media accounts. Furthermore, access to Payday’s own social media accounts has been restricted, preventing the public from sending comments or messages to the company.
This alarming development has ignited a series of conversations about the potential risks associated with the growing fintech sector in Nigeria. It highlights the need for a more robust regulatory framework to prevent such fraudulent activities in the future.
The Payday case serves as a stark reminder of the potential risks that can emerge in the fintech sector. As the industry continues to grow and evolve, it is essential that regulators, companies, and consumers work together to ensure a safer and more secure future for fintech in Nigeria.
