Stripe acquires Nigeria’s Fintech company, Paystack for $200M

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One of the most popular finetech apps in Africa, Paystack has announced they will be joining American financial company, Stripe to accelerate online and offline commerce across Africa.

Paystack is a technology company powering growth for businesses in Africa through our collection of secure payment tools. Merchants already use the technology to process hundreds of millions of dollars each month.

Over 60,000 businesses of all sizes use our suite of Collections, Disbursements, Identity Verification, Reporting, and Commerce tools to grow their business across the continent, including FedEx, UPS, MTN, the Lagos Internal Revenue Service, and AXA Mansard.

Customers from 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 is also a technology company that builds economic infrastructure for the internet. Companies of all sizes – including Amazon, Google, Shopify, and Zoom – use Stripe’s software to accept payments and scale their online businesses. Each year, more than 80% of American adults complete a purchase using Stripe.

The acquisition by Stripe is the culmination of a close partnership between Stripe and Paystack over the last several years. Both companies are alums of the Y Combinator accelerator program.

Stripe Inc. will be acquiring Nigerian startup for $200 million to jump-start its expansion in Africa

Commenting on the new partnership, Shola Akinlade, CEO and co-founder of Paystack said, “I’m thankful to share that Paystack is joining the Stripe family. We’ll be acquired by Stripe to accelerate online commerce across Africa, pending standard closing conditions including regulatory approvals.

“In partnership with Stripe, we’re excited to continue to help build a new generation of transformative businesses across Africa.

“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.”

Matt Henderson, Stripe’s business lead in EMEA also added, “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.”

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