Founded by Shola Akinlade and Ezra Olubi, Paystack has been operating in Nigeria since 2015, providing payment solutions to small businesses, larger corporates, fintech, online betting companies, educational institutions in the country.
The American fintech giant, Stripe has acquired Paystack, two years after a strategic investment in the startup.
That makes this the biggest startup acquisition to date to come out of Nigeria, as well as Stripe's biggest acquisition to date anywhere.
Paystack now processes more than half of all online transactions in Nigeria and has ambitious plans to expand across the continent and recently started a pilot with businesses in South Africa.
Currently, Stripe has no plans to acquire other regional companies or other operations simply to expand Stripe's footprint, with the interest in Paystack being about how well they'd built the company, not just where they are located.
In his reaction, Shola Akinlade, chief executive officer (CEO) of Paystack, said the company will be joining Stripe to accelerate online and offline commerce across Africa.
"Paystack now processes more than half of the online transactions in Nigeria and wants to expand into other countries on the African continent".
According to Patrick Collison, the co-founder and CEO of Stripe, the acquisition of Paystack is an enormous opportunity.
Stripe led Paystack's Series A funding round in 2018 and has provided the company with guidance as it expanded. Paystack will continue to operate independently and Stripe will over time embed it into its global payments and treasury network, a programmable platform for global money movement that now spans 42 countries, Stripe said. And even with larger global declines, online shoppers are growing twice as fast.
The acquisition would allow organisations of all sizes to easily collect payments from around the world, the statement said.
Collison further noted that Stripe is planning for "a longer time horizon" than most other Fintech businesses.
"We believe deeply that with the right tools, African creators, developers, and entrepreneurs can do incredible things. 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".