Nigerian payments company Paystack has been acquired by US fintech firm Stripe in a deal worth over $200m, company representatives said.
The announcement made on Thursday aims to help to expand and consolidate Africa’s fragmented digital payments infrastructure.
Under the terms of the deal, Paystack will continue to operate independently, growing their operations in Africa and adding more international payment methods.
San Francisco-based Stripe, valued at $36bn, is an online payments company whose software is used by Amazon, Google, Shopify, and Zoom.
The move is part of Stripe’s global expansion plans as it positions itself to capitalise on Africa’s booming internet economy. Online commerce in the region is growing 21% year-on-year, 75% faster than the global average. Lagos-based Paystack currently processes over 50% of all online payments in Nigeria.
Over time, Paystack’s capabilities will be embedded in Stripe’s Global Payments and Treasury Network (GPTN), a platform that currently spans 42 countries.
More than 60,000 businesses in Nigeria and Ghana use Paystack to securely collect online and offline payments. The company also harbours plans to expand across the region, and recently started a pilot working with businesses in South Africa.
Stripe and Paystack have been working together since 2018, when Stripe led Paystack’s Series A financing round, and it has provided mentoring to the company ever since.
The acquisition aims to help Paystack scale its business and consolidate electronic payments infrastructure throughout the region, said Matt Henderson, Stripe’s business lead in EMEA.
“This acquisition will give Paystack resources to develop new products, support more businesses and consolidate the hyper-fragmented African payments market,” he said.
The investment will help Paystack provide the tools for African entrepreneurs to develop and grow their businesses, said Shola Akinlade, Paystack CEO and co-founder.
“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.”
The acquisition is subject to standard closing conditions and regulatory approvals, the companies said.