The fintech company now boasts of around 60,000 customers, including small businesses, larger corporates, educational institutions and online companies.
Fintech, coined from "finance" and "technology", refers to any business that uses technology to enhance or automate financial services and processes.
Paystack CEO and co-founder Shola Akinlade said: "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".
These were the details of the news Stripe takes over Nigerian Paystack for $ 200 million for this day.
The deal underscores two interesting points about Stripe, now valued at $36 billion and regularly tipped as an initial public offering (IPO) candidate.
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Patrick Collison, CEO at Stripe, told the news outlet that his company is focused on expanding its operations into Africa.
He explained that although Africa is smaller than other regions, online commerce will grow about 30 per cent every year. He also indicated that the pace of online shoppers in Africa was growing at twice the rate for the rest of the world, further highlighting an important aspect of why the deal made sense.
Stripe led Paystack's Series A funding round in 2018 and has provided the company with guidance as it expanded. For Stripe, Paystack brings 60k users and gives it a toehold on the continent, which is projected to have half the world's population by 2050.
Stripe had earlier invested in Paystack when they led an $8 million funding round in Paystack. "We'll be acquired by Stripe to accelerate online commerce across Africa, pending standard closing conditions including regulatory approvals", he said. The company has raised over US$10-million from both worldwide and local investors including Stripe, Visa, Tencent, Y Combinator, Comcast Ventures Catalyst Fund, Blue Haven Ventures and Ventures Platform. I think we are trying to do the same thing.
Stripe - the $36B private payments firm - has the most ambitious mission statement of any startup: it wants to increase the GDP of the internet.