Nigerian tech startup acquired by US fintech

Nigerian fintech startup, Paystack, has recently been acquired by an American fintech to establish a convenient payment system in Africa. 

 The startup assists with payments for various companies such as MTN, FedEx, and UPS process payments all over the country

The American fintech, Stripe will ensure that online and offline payments are more convenient for businesses in Africa. 

Stripe is an American tech company that provides an economic infrastructure for the internet. 

Shola Akinlade, CEO and Co-Founder of Paystack, comments on the acquisition and joining Stripe. 

“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 Akinlade.

While Paystack has joined with the US business, it will continue to work independently to expand its business in Africa and provide universal payment options. 

Paystack’s already capable platform will be immersed with Stripe’s Global Payments and Treasury Network (GPTN) which manages global transactions in 42 countries.

Assisting businesses in Africa

According to reports, in Africa, the online economy has grown rapidly with an overall increase of more than 21% per year. This surpasses the global average by 75%.

In Ghana and Nigeria alone, there are more than 60 000 businesses that use Paystack services to secure online and offline payments. The platform has also assisted businesses in launching new enterprises and improve their customer service.

The startup has also managed more than half of the online transactions in Nigeria and has plans to expand its services across the African continent.

Years in the making

Stripe led Paystack’s $8-million Series A financing round with Visa and Tencent in 2018. Since then, the US company has guided Paystack as the startup grew to meet its customer’s needs.

In a statement to Ventureburn, Matt Henderson, Stripe’s business lead in EMEA, explains that Paystack has achieved more in five years than most fintech’s in decades. 

He added that by joining with Stripe, Paystack will have access to more resources and support more businesses in Africa.

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

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Feature image: Founders of Paystack (Supplied)