He explained that although Africa is smaller than other regions, online commerce will grow about 30 per cent every year. The deal is subject to standard closing conditions, including regulatory approval.
However, this is not Stripe's first contact with Paystack.
This acquisition is the biggest to come out of Nigeria and also Stripe's biggest acquisition so far.
Paystack is one of Nigeria's largest online and offline payment solution startups. It has reportedly launched a pilot with a few businesses based in South Africa.
Stripe led an $8 million Series A funding round for Paystack in 2018 and has now made a decision to buy the Nigerian outfit to take advantage of a market that has huge potential, with online commerce on the continent growing at 21% year-over-year.
Paystack founders Shola Akinlade and Ezra Olubi
"In just five years, Paystack has done what many companies could not achieve in decades", said Matt Henderson, Stripe's business lead in EMEA.
Early in 2020, when American financial and SaaS company, Stripe announced that it had raised $600 million in funding, it stated clearly that the main objective of that round of funding was to expand its payment processing service into more countries. "We can't wait to see what they will build next and how their growth can turbocharge the African tech ecosystem".
In a video share, Paystack CEO and co-founder Shola Akinlade publicly shared the news. Paystack will continue to operate independently and Stripe will over time embed it into its global payments and treasury network, a programmable platform for global money movement that now spans 42 countries, Stripe said. And even with wider global declines, online shoppers are growing twice as fast.
The statement described Stripe as a technology company that builds economic infrastructure for the Internet. "We are thinking of what the world will look like in 2040-2050", he said.
Over time, Paystack said it's capabilities would be embedded in Stripe's Global Payments and Treasury Network, a programmable platform for global money movement that now spans 42 countries.
"We believe deeply that with the right tools, African creators, developers, and entrepreneurs can do incredible things".
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