Nigerian payments company, Paystack, has agreed to be acquired by global payments leader Stripe to make online and offline payments easier for African businesses, and enable more global companies to enter the fast-growing region.
Paystack powers payments for thousands of companies of all sizes – including FedEx, UPS and MTN – and processes over 50 per cent of all online payments in Nigeria, Africa’s largest market.
Stripe is a technology company that builds economic infrastructure for the internet. Millions of businesses in 42 countries are using Stripe to process hundreds of billions of dollars across the globe
The African internet economy is growing quickly, with online commerce in the region growing 21 per cent year-over-year, 75 per cent faster than the global average.
In order to help grow Africa’s online GDP, Stripe has entered into an agreement to acquire Paystack, a technology company based in Lagos that makes it easy for organizations of all sizes to collect payments from around the world.
Today, more than 60,000 businesses in Nigeria and Ghana use Paystack to securely collect online and offline payments, launch new business models, and deepen customer relationships. Incredibly, Paystack already processes more than half of all online transactions in Nigeria. Paystack has ambitious plans to expand across the continent and recently started a pilot with businesses in South Africa.
Stripe and Paystack have been working closely together for some time. In 2018, Stripe led Paystack’s Series A financing round and has provided ongoing guidance as the company rapidly scaled.
“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,” said Matt Henderson, Stripe’s business lead in EMEA.
“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,” said Shola Akinlade, CEO and co-founder of Paystack.