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The African tech ecosystem has seen a historic moment after Nigerian fintech company Paystack was acquired by global payments leader Stripe in a deal that could reportedly be worth more than $ 200 million.
Released in January 2016 by Shola Akinlade and Ezra Olubi, Payment stack is a payment company that helps businesses in Africa receive payments from anyone, anywhere in the world. The startup processes more than 50 percent of all web payments in Nigeria, powering payments from more than 60,000 organizations, including FedEx, UPS, MTN, and many others.
The company has now been acquired by Stripe, which led $ 8 million funding round from Paystack in 2018. Stripe’s payments software is used by clients such as Amazon, Google, Shopify, and Zoom, and its acquisition of Paystack is the latest move in its international expansion. Paystack will be Stripe’s catalyst for the growth of Internet commerce in Africa, and the Lagos-based startup has plans to expand across the continent, starting with a pilot in South Africa.
“In just five years, Paystack has achieved what many companies could not achieve in decades. Their focus, values, and tech-first ambition largely align with ours. This acquisition will provide Paystack with resources to develop new products, support more business and consolidate the hyper-fragmented African payments market, ”said Matt Henderson, Stripe’s EMEA business leader.
“We can’t wait to see what they will build next and how their growth can boost the African tech ecosystem.”
Paystack will continue to operate independently, increasing its operations in Africa and adding more international payment methods. Over time, Paystack’s capabilities will be integrated into Stripe’s Global Payment and Treasury Network (GPTN), a programmable platform for the global movement of money that currently spans 42 countries.
“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 foster transformative businesses on the continent,” said Akinlade.
“We deeply believe that with the right tools, African creators, developers and entrepreneurs can do incredible things. Leveraging Stripe’s deep experience and resources, we are excited to accelerate our geographic expansion and introduce more payment channels, more value-added services, and deeper integrations with global platforms. ”
The acquisition is subject to standard closing conditions, including regulatory approvals.
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