American leading online payment giant, Stripe has acquired Nigerian payment startup, Paystack in a deal rumored to be around $200Miliion. Both Stripe and Paystack provide APIs that allow merchants, with just a few lines of code, to build online payment features.
In a blog post published by Shola Akinlade, co-founder and CEO of Paystack, revealed that the payment firm will continue to operate independently. Over time, its capabilities will be embedded in Stripe’s programmable platform for the global money movement that currently spans 42 countries.
In 2018, the American payment giant, Stripe led an $8 million Series A funding round for Paystack, and they have has expanded their operation into other African countries.
Shola Akinlade, CEO, Paystack, adds: “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.”
Matt Henderson, business lead, Emea, Stripe, says: “In just five years, Paystack has done what many companies could not achieve in decades. Their tech-first approach, values, and ambition greatly align with our own. This acquisition will give Paystack resources to develop new products, support more businesses and consolidate the hyper-fragmented African payments market.”