Paystack is a Nigerian financial technology (fintech) company that provides online and offline payment solutions to businesses across Africa. Founded in 2015 by Nigerian computer science graduates Shola Akinlade and Ezra Olubi, the company was accepted into Y Combinator’s startup accelerator in 2016, where it received early-stage funding in Silicon Valley. Later that year, Paystack publicly launched. By 2020, it was serving over 60,000 businesses and was acquired by Stripe for over $200 million, making it the largest startup acquisition to date from Nigeria and Stripe’s biggest acquisition at the time.[1][2][3]
Paystack was founded in 2015 by Nigerian computer science graduates Shola Akinlade and Ezra Olubi.[1][3] The company later participated in the Y Combinator startup accelerator, receiving early-stage funding in Silicon Valley.[1][4] Paystack publicly launched in 2016 after participating in Y Combinator's Winter 2016 cohort.[5]
In October 2020, Stripe announced its acquisition of Paystack for over $200 million, marking one of the largest fintech acquisitions in Africa.[2] As part of the deal, Stripe stated that Paystack would serve as a “growth engine for modern businesses in Africa,” with plans to support more businesses and consolidate the fragmented African payments market.[6]
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.[7]
In November 2023, Bloomberg reported that Paystack was restructuring its operations, scaling back in Europe and the Middle East to focus on expanding within African markets.[8]
Funding
In 2016, Paystack raised $1.3 million in seed funding from investors, including Tencent and Comcast Ventures.[9] In 2018, the company secured $8 million in a Series A funding round led by Stripe, with participation from Visa, and Tencent.[6][10] In 2020, Stripe acquired Paystack for over $200 million, as part of its expansion into Africa. Prior to the acquisition, Paystack served around 60,000 businesses, processing both online and offline transactions.[2]
Global investment in African fintech
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.[11] 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.[11] Stripe co-founder Patrick Collison described Africa as an emerging market, noting that online commerce in the region is projected to grow 30% annually.[6]
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.[1]
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.[3]
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. It stated 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". The article also mentioned Paystack, along with Flutterwave and M-Pesa, as companies that have transformed the digital payments landscape and facilitated financial transactions across the continent.[4]
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.[4]
Partnerships
2016: Launched a payments solution integrated with e-commerce platform Shopify to allow more African retailers to sell their goods on the platform.[12]
2021: Introduced Pay with Apple Pay on its platform.[13]
2022: Partnered with accounting software provider Xero, enabling Xero users in Africa to add a "Pay with Paystack" button to their invoices.[citation needed]
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