Stripe announces acquisition of African commerce system Paystack

Africa is home to 17% of the global population but just 2% of global online commerce

At present over 60,000 businesses in Nigeria and Ghana are powered by Paystack with a new pilot model being rolled out in South Africa. File image.

Stripe, founded by Limerick brothers John and Patrick Collison has announced the acquisition of Paystack, a similar company that powers much of the virtual trading market in Africa.

The continent, which is home to 17% of the population but just 2% of global online commerce, has a fast-expanding internet economy.

Online commerce in Africa has increased 21% year on year, 75% faster than the global average. 

At present, more than 60,000 businesses in Nigeria and Ghana are powered by Paystack, with a new pilot model being rolled out in South Africa. 

Though clients and employees of the company will not notice any change and Paystack will continue to work independently, the acquisition highlights a significant boost to online sales. 

I couldn’t be more delighted that @Paystack will be joining us at @Stripe. The African tech ecosystem is expanding very rapidly. We and the Paystack team are eager to invest in a big way over the years to come.https://t.co/vT81KhKvnJ pic.twitter.com/TPmrvVNjoD

— Patrick Collison (@patrickc) October 15, 2020

Commenting on the announcement, Paystack chief executive and founder Shola Akinlade, said he is excited for the future, "Paystack is a growth engine for modern businesses in Africa, and we couldn't be more excited to join forces with Stripe, whose mission and values are so aligned with ours, to nurture transformative businesses on the continent."

Mr Akinlade said balancing African creators, developers, and entrepreneurs with Stripe's resources and expertise can accelerate his company's geographic expansion and do "incredible things".