The "Stripe for Africa" that Stripe actually bought. Paystack solved online payments in Nigeria — a country of 220 million people where e-commerce was nearly impossible because payment infrastructure didn't exist. Stripe acquired them for $200 million in 2020 — the largest startup acquisition in African tech history. Now backed by Stripe's resources, Paystack is expanding across the continent. Africa has 1.4 billion people, rising internet penetration, and broken payment systems. Paystack is building the rails that everything else will run on.
Founded
2015
HQ
Lagos, Nigeria
Total Raised
$10 million (pre-acquisition)
Founder
Shola Akinlade & Ezra Olubi
Status
Acquired by Stripe (2020) for ~$200 million
Website
paystack.comTHE ORIGIN STORY
Shola Akinlade and Ezra Olubi were frustrated that accepting online payments in Nigeria was nearly impossible. Banks required weeks of paperwork.
Payment gateways were unreliable. Checkout flows had 30%+ abandonment rates.
They built Paystack as the "Stripe for Africa" — a simple API that lets any business accept payments online in minutes. Y Combinator accepted them in 2016.
WHAT THEY ACTUALLY DO
Payment processing fees. Paystack charges merchants 1.5% + ₦100 per local transaction and 3.9% + ₦100 for international transactions.
Revenue grows with transaction volume processed. Since Stripe acquisition, Paystack has expanded across Africa.
THE PRODUCTS
Paystack Payments (online payment processing), Paystack Terminal (in-person payments), Paystack Commerce (storefront builder), Paystack Transfers (send money), Paystack Invoices, Developer API.
HOW THEY GREW
Pan-African expansion. Paystack launched in Nigeria, expanded to Ghana, South Africa, and Kenya.
The goal is to become the default payments infrastructure across all of Africa. Since Stripe's acquisition, they have Stripe's resources to build faster.
Also expanding into B2B payments, payroll, and financial management tools.
THE HARD PART
Infrastructure reliability in African markets. Internet connectivity is inconsistent.
Banking systems are fragmented across countries. Regulatory environments differ in every market.
Paystack has to build payments infrastructure in markets where the underlying financial infrastructure barely exists.
WHO BACKED THEM
Stripe, Y Combinator, Tencent, Comcast Ventures, Singularity Investments
Related Profiles
Head-to-Head
Compare Paystack vs another company.