Prominent payment processor, stripe is acquiring Nigeria’s Paystack popularly know as “Stripe for Africa” for $200 million to accelerate online commerce in Africa. Paystack is a technology company that provides a quick way to integrate payments services into an online or offline transaction by way of an API.
According to a report from techcrunch, paystack currently has around 60,000 customers, including small businesses, larger corporates, fintechs, educational institutions, and online betting companies, and the plan will be for it to continue operating independently, the companies said.
This acquisition is the biggest to date to come from a Nigeria startup and also stripes biggest acquisition to date anywhere.
“There is enormous opportunity,” said Patrick Collison, Stripe’s co-founder and CEO, in an interview with TechCrunch.
I couldn’t be more delighted that @Paystack will be joining us at @Stripe. The African tech ecosystem is expanding very rapidly. We and the Paystack team are eager to invest in a big way over the years to come.https://t.co/vT81KhKvnJ pic.twitter.com/TPmrvVNjoD— Patrick Collison (@patrickc) October 15, 2020
“In absolute numbers, Africa may be smaller right now than other regions, but online commerce will grow about 30% every year. And even with wider global declines, online shoppers are growing twice as fast. Stripe thinks on a longer time horizon than others because we are an infrastructure company. We are thinking of what the world will look like in 2040-2050.”
For paystack, this deal will give the company a lot more fuel (that is, investment) to build out further in Nigeria and expand to other markets, CEO Shola Akinlade said in an interview.
“Paystack was not for sale when Stripe approached us,” said Akinlade, co-founder of Paystack and Ezra Olubi, Paystack CTO. “For us, it’s about the mission. I’m driven by the mission to accelerate payments on the continent, and I am convinced that Stripe will help us get there faster. It is a very natural move.”
In a statement on paystack blog, the company said it has 114 friends of 12 nationalities, currently working remotely across 9 countries. What happens next is that we go right back to work, because there is so much that we can fix and improve in Africa’s financial infrastructure.
This acquisition 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, and Stripe led our Series A round of funding in 2018.We also share a strong cultural DNA. We value voracious curiosity and transparency, we’re inspired by hard challenges, and we’re profoundly optimistic about the future.
The company delayed the announcement of the acquisition deal with stripe but has plans to share more about Paystack journey to this point. According to Paystack this would be done after the serious conversations of police violence and brutality happening across Nigeria is settled.
In the midst of a tough week in Nigeria, we have some positive news to share.— Paystack (@paystack) October 15, 2020
Paystack will be acquired by @stripe to accelerate online and offline commerce across Africa.https://t.co/7ZAA8vhdIz pic.twitter.com/kShKF5evBK
This remains a huge win for the tech industry in Africa and a positive sign on what to expect in the coming years from Africa fintech industry.
Paystack is a technology company powering growth for businesses in Africa through our collection of secure payment tools.
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. Merchants already use our technology to process hundreds of millions of dollars each month, and joining forces with Stripe will supercharge our ability to serve our community of makers and help more businesses across the continent.
Stripe is 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.
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