Lagos-based Paystack acquired by Stripe for $200Million

Cornelia Mascio
Ottobre 18, 2020

Stripe is acquiring Paystack, the Lagos-based startup.

The acquisition is subject to standard closing conditions, including regulatory approvals, the companies said.

"This acquisition is the culmination of a close partnership between Stripe and Paystack over the last several years".

The move is Stripe's first major global acquisition, although it acquired the Irish startup Touchtech previous year.

Paystack is a technology company fueling the growth of businesses in Africa through the use of highly secured payment tools. Paystack plans to expand across the African continent and has recently launched a pilot with businesses in South Africa. In 2018, Stripe led an $8 million funding round for Paystack, alongside other big wigs like Visa and Tencent participating.

"Paystack will continue to operate independently, and there will be no disruption of service as a result of this acquisition", Akinlade said.

Patrick Collison, Stripe's co-founder and CEO, said that the acquisition would help Stripe expand to other geographics.

"In just five years, Paystack has done what many companies could not achieve in decades", said Matt Henderson, Stripe's business lead in EMEA. He also indicated that the pace of online shoppers in Africa was growing at twice the rate for the rest of the world, further highlighting an important aspect of why the deal made sense. "There are some details of Stripe that we consider mistakes, but we can see that Paystack 'gets it, ' it's clear from the site and from the product sensibilities, and that has nothing to do with them being in Africa or African". Stripe thinks on a longer time horizon than others because we are an infrastructure company. We are thinking about what the world will look like in 2040-2050, "he said". Over time, Paystack's capabilities will be embedded in Stripe's Global Payments and Treasury Network (GPTN), a programmable platform for global money movement that now spans 42 countries.

Founded in 2015 by Ezra Olubi and Shola Akinlade, the African company makes it easy for online merchants of all sizes to accept a wide range of payment methods. "Leveraging Stripe's resources and deep expertise, we're excited to accelerate our geographic expansion and introduce more payment channels, more value-added services, and deeper integrations with global platforms".

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