American financial services and software company Stripe is acquiring Paystack, a startup out of Lagos, Nigeria that, like Stripe, provides a quick way to integrate payments services into an online or offline transaction by way of an API, the company has confirmed.
Paystack is a technology company powering growth for businesses in Africa through a collection of secure payment tools. The company has 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. Various merchants already use their technology to process hundreds of millions of dollars each month, and joining forces with Stripe will supercharge their ability to serve the community of makers and help more businesses across the continent.
I’m thankful to share that Paystack is joining the Stripe family. We’ll be acquired by Stripe to accelerate online commerce across Africa, pending standard closing conditions including regulatory approvals.Shola Akinlade – CEO Paystack
According to Paystack, the company will continue to operate independently, and there will be no disruption of service as a result of this acquisition. If you’re using Paystack today, there’s no need to change anything about your technical integrations.
Paystack merchants and partners can look forward to more payment channels, more tools, accelerated geographic expansion, and deeper integrations with global platforms. The platform will continue to execute against an ambitious roadmap with the support of Stripe’s resources and deep expertise.
TechCrunch reports that the terms of the deal are not being disclosed but sources close to it confirm that it’s over $200 million. That makes this the biggest startup acquisition to date to come out of Nigeria, as well as Stripe’s biggest acquisition to date anywhere.
“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.”Patrick Collison, Stripe’s co-founder and CEO.
For Paystack, the 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, who co-founded the company with Ezra Olubi (who is the 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.”
Paystack had been on Stripe’s radar for some time prior to acquiring it. Like its US counterpart, the Nigerian startup went through Y Combinator that was in 2016, and it was actually the first-ever startup out of Nigeria to get into the world-famous incubator. Then, in 2018, Stripe led an $8 million funding round for Paystack, with others participating including Visa and Tencent. (And for the record, Akinlade said that Visa and Tencent had not also approached it for acquisition. Both have been regular investors in startups on the continent.)