Payment processing giant Stripe has acquired Nigerian startup Paystack in a $200M+ deal. Stripe seeks to expand into the African Market in its bigger strategy announced earlier this year to expand its API- based payment processing services to more regions.
Paystack, like Stripe offers online payment integration services using APIs to facilitate transactions. To date, Paystack has approximately 60 000 customers ranging from small businesses, fintechs to large corporations.
The acquisition makes it the biggest startup acquisition in Nigeria as well Stripes biggest acquisition to date.
Valued at $36 Billion, Stripe is actively expanding its global presence through acquiring smaller companies in different regions. In the last 2 years, stripe has expanded its operations to 17 countries. With this deal, Stripe is keen to strategically position itself to take advantage of the actively growing African market.
According to Stripe, the acquisition will rapidly accelerate online commerce across Africa. Africa’s online economy is growing rapidly, with ecommerce averaging 21% yearly growth.
Stripe has in the past years worked with Paystack notably taking part in the 2018 Series A Funding among other industry players in a move $8M for Paystack.
This acquisition will provide resources for Paystack to develop more products and consolidate the fragmented African Payment Market. Paystack will however operate independently, grow its operations across Africa and integrate more international payment methods to the platform.
Over time, Paystack’s features will be embedded in the Stripe’s Global Payment and Treasury Network (GPTN) which is available in at least 42 countries worldwide.