Published On: Sat, Oct 17th, 2020

Nigerian fintech company Paystack to be acquired by Stripe

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Stripe acquisition of Paystack : American payment technology firm Stripe has signed a deal to acquire Paystack, a Nigerian fintech company, for an undisclosed price.

Paystack is said to enable organizations of all sizes in Nigeria and Ghana in receiving payments from various parts of the world.

The Nigerian fintech company is claimed to serve 60k plus businesses in the two African countries by helping them in getting secure online and offline payments.

Paystack is said to process over 50% of all online transactions made in Nigeria, said the US payment technology company.

The Nigerian payments company had recently launched a pilot with South African businesses in an effort to increase its presence across Africa.

Stripe had led Paystack’s $8 million Series A funding round, which was held a couple of years ago. The Series A round saw the Nigerian fintech company bag investments from Visa, Y Combinator, and Tencent as well.

Stripe acquisition of Paystack

Stripe acquisition of Paystack. Image courtesy of Stripe.

Matt Henderson – Stripe EMEA business lead, commenting on Stripe acquisition of Paystack, said: “In just five years, Paystack has done what many companies could not achieve in decades. Their tech-first approach, values, and ambition greatly align with our own. This acquisition will give Paystack resources to develop new products, support more businesses and consolidate the hyper-fragmented African payments market.

“We can’t wait to see what they will build next and how their growth can turbocharge the African tech ecosystem.”

Paystack will continue to function as an independent business, post-acquisition, and will grow its operations across Africa, and add more international payment methods to its platform.

Its capabilities will be integrated into Stripe’s global payments and treasury network (GPTN) in the future.

Commenting on Stripe acquisition of Paystack, Shola Akinlade – CEO and co-founder of Paystack, said: “Paystack is a growth engine for modern businesses in Africa, and we couldn’t be more excited to join forces with Stripe, whose mission and values are so aligned with ours, to nurture transformative businesses on the continent.

“We believe deeply that with the right tools, African creators, developers, and entrepreneurs can do incredible things. Leveraging Stripe’s resources and deep expertise, we’re excited to accelerate our geographic expansion and introduce more payment channels, more value-added services, and deeper integrations with global platforms.”

The completion of Stripe acquisition of Paystack would need regulatory approvals and the fulfillment of other standard closing conditions.

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