Stripe strides into African online economy by buying Paystack

By: October 15, 2020
Stripe buys Paystack for 200 million dollars baby

The continent of Africa embodies 17% of the world’s population, but it delivers only 2% of the planet’s e-commerce activity.

With this in mind, Stripe has bought Paystack, a tech firm from Lagos, Nigeria that makes it easy for businesses of all sizes to collect payments from around the world. The deal is said to be worth over $200 million.

The African internet economy is increasing rapidly. Online commerce in the region is progressing at 21% year-over-year, 75% faster than the global average.

“In just five years, Paystack has done what many companies could not achieve in decades. Their tech-first approach aligns with our own. This acquisition will give Paystack resources to develop new products and consolidate the hyper-fragmented African payments market,” says Matt Henderson, Stripe’s business lead in EMEA.

Over 60,000 businesses of all sizes in Nigeria and Ghana use Paystack to collect online and offline payments. Paystack processes more than half of all online transactions in Nigeria and has plans to expand to more countries in the region.

“Paystack is a growth engine for modern businesses in Africa,” says Shola Akinlade, CEO and co-founder of Paystack, pictured above with John Collison, co-founder of Stripe. “We believe deeply that with the right tools, African creators, developers, and entrepreneurs can do incredible things.”

Watch – the future of payments
There’s a conversation from the Stripe Sessions event last year between John and Paystacck co-founder Shola below.