# 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.
In March 2025, Business Day published an article stating that Africa’s e-commerce sector is expanding, driven by a growing middle class and increased smartphone adoption. The article notes that, "as digital payments improve and trust in online shopping grows, e-commerce is expected to play a pivotal role in Africa’s economic transformation".
In April 2022, Reuters reported that African startups raised $5.2 billion in venture capital in 2021, with fintech firms accounting for 60% of total investment. The article cited Paystack's acquisition by Stripe as an example of international interest in African startups.
In November 2020, BBC News reported that Paystack processed over 50% of all web payments in Nigeria and served over 60,000 organizations, including FedEx, UPS, and MTN. The article described Paystack as part of Africa’s expanding digital payments sector. BBC also reported that improved digital payment and clearing systems could help small businesses and traders across Africa save time and costs.
The acquisition of Paystack by Stripe, announced in October 2020, was part of a broader trend of increasing global investment in African fintech startups. Other major deals included 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 grown, driven by high mobile money adoption and a large unbanked population. Analysts note that Stripe’s acquisition of Paystack reflects a growing trend of increasing fintech acquisitions in Africa, with companies such as Visa, Mastercard, PayPal, and Tencent investing in African fintech startups.

## 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

* 2016: Launched a payments solution integrated with e-commerce platform Shopify to allow more African retailers to sell their goods on the platform.
* 2021: Selected as the preferred payment partner of open-source e-commerce solution WooCommerce.
* 2021: Introduced Pay with Apple Pay on its platform.
* 2022: Partnered with accounting software provider Xero, enabling Xero users in Africa to add a "Pay with Paystack" button to their invoices.