# Paystack

Paystack is a Nigerian financial technology company that provides online and offline payment solutions to businesses. The company processes over 50% of all online payments in Nigeria and serves over 60,000 businesses, including Domino’s Pizza and MTN. In 2020, Paystack was acquired by Stripe for over $200 million.

## History

Paystack was founded in 2015 by Shola Akinlade and Ezra Olubi, who met at Babcock University and worked in banking and IT before founding Paystack. In November 2015, it was accepted by the startup accelerator Y Combinator. The public launch of Paystack was in 2016, as the product came out of beta. and Paystack Starter Businesses was launched in early 2018.

## Funding

In 2016, it raised $1.3M seed funding from Tencent and other investors. In 2018, it raised $8M in a Series A funding led by Irish-American financial services company Stripe. It was acquired in 2020 by Stripe for $200M in a bid to extend Stripe's reach in Africa. Before the acquisition, Paystack was reported to have been used by over 60,000 businesses in Nigeria and Ghana for the collection of online and offline payments.

## Global investment in African fintech

According to CNN, the COVID-19 pandemic contributed to increased digital banking adoption across Africa, with Paystack reporting a fivefold rise in business sign-ups in 2020. Paystack co-founder Shola Akinlade stated that the pandemic highlighted how many African businesses lacked adequate digital infrastructure, making it challenging for them to transition to online transactions.
The acquisition of Paystack by Stripe is part of a broader trend of increasing global investment in African fintech startups. Other major deals include the $288 million acquisition of DPO Group by Network International and World Remit’s $500 million purchase of Sendwave. According to Global Finance, Africa’s fintech sector has seen significant growth, driven by high mobile money adoption and a large unbanked population.
Analysts note that Stripe’s acquisition of Paystack may be part of a broader trend of increasing fintech acquisitions in Africa. Companies such as Visa, Mastercard, PayPal, and Tencent have made investments in African fintech startups, and some industry observers anticipate that these firms may pursue similar deals in the future.

## Startup Act (2022)

Fintech is one of the fastest-growing tech sectors in Africa, providing mobile money, digital payments, and lending solutions to unbanked populations. Nigeria has become a key hub for fintech startups, attracting investment and international expansion. In 2022, the Nigerian government enacted the Startup Act, which introduced tax incentives and funding mechanisms to support entrepreneurs.

## Partnerships

* Paystack launched a payments solution integrated with E-commerce platform Shopify to allow more African retailers to sell their goods on the platform in 2016.
* It was selected as the preferred payment partner of open-source eCommerce solution WooCommerce in 2021.
* It launched Pay with Apple Pay on its platform in 2021.
* It launched a partnership with Accounting software solution Xero in 2022 that will allow Xero users in Africa to add a 'Pay with Paystack' button to their Xero invoices.