The African Internet economy is rapidly expanding, with online trade growing 21% y-o-y in the region, 75% faster than the global average
To help increase Africa’s online GDP, Stripe has agreed to acquire Paystack, a technology company based in Lagos, which makes it easy for organisations of all sizes to collect payments from around the world.
Today, more than 60,000 businesses in Nigeria and Ghana are using Paystack to securely collect online and offline payments, launch new business models and deepen customer relationships. Incredibly, Paystack is already processing more than half of all online transactions in Nigeria. Paystack has ambitious plans to expand across the continent and has recently launched a pilot with companies in South Africa.
Stripe and Paystack have been working closely together for some time now. In 2018, Stripe led the Paystack Series A funding round and provided ongoing guidance as the company expanded rapidly.
“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 provide Paystack with resources to develop new products, support more businesses and strengthen the hyper-fragmented African payments market,” said Matt Henderson, Stripe’s business lead in EMEA. “We can’t wait to see what they will build next and how their growth can turbocharge the African tech ecosystem.”
Paystack will continue to operate independently, expand its operations in Africa and add more international payment methods. Over time, Paystack’s capabilities will be embedded in Stripe’s Global Payments and Treasury Network (GPTN), a programmable global money movement platform currently spanning 42 countries.
The acquisition is subject to standard closing conditions, including regulatory approvals.
