U.S. payments firm Stripe buys startup Paystack

Stripe takes over Nigerian Paystack for $ 200 million

Concretely, what Stripe has acquired is a base of approximately 60,000 customers, including small and large businesses, fintechs, institutions and online betting companies.

"In absolute numbers, Africa may be smaller now than other regions, but online commerce will grow by around 30% each year". Shola Akinlade, Paystack's co-founder and chief executive officer, confirmed the acquisition in a blog post Thursday, adding that the deal is pending regulatory approval.

It is for this reason that Paystack has been regularly nicknamed the "Stripe of Africa".

The move is Stripe's first major global acquisition, although it acquired the Irish startup Touchtech past year. Paystack, which now has more than 60,000 customers, and used by institutions such as governments, fintech, small businesses and larger corporations, has stamped its mark in Africa's largest country by population and economy.

In 2018, Stripe had led an $8 million Series A investments round for Paystack.

According to Patrick Collison, the co-founder and CEO of Stripe, the acquisition of Paystack is an enormous opportunity.

Stripe takes over Nigerian Paystack for $ 200 million

It said its operations would remain independent and there will be no disruption of service as a result of the acquisition. And even with larger global declines, online shoppers are growing twice as fast.

Early in 2020, when American financial and SaaS company, Stripe announced that it had raised $600 million in funding, it stated clearly that the main objective of that round of funding was to expand its payment processing service into more 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 nurture transformative businesses on the continent.

Stripe is a technology company building economic infrastructure for the internet. "We simply can't wait to see what they will build next and how their growth can turbocharge the African tech ecosystem". He pointed out that the company is thinking of "what the world will look like in 2040-2050".

"We believe deeply that with the right tools, African creators, developers, and entrepreneurs can do incredible things", he added. I'm driven by the mission to accelerate payments on the continent, and I am convinced that Stripe will help us get there faster.



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