US payments firm Stripe buys Nigeria's Paystack

This picture taken on June 7, 2016, in Paris, shows Stripe company's logo during its commercial launch in France. Stripe is an online payments company.

AFP

WASHINGTON - US online payments giant Stripe said Thursday it was buying Paystack, pioneering payments firm in Nigeria, and plans to expand across the African continent.

The amount of the transaction was not disclosed but US media put it on the order of $230 million, which would make it the largest acquisitions of an African start-up.

Stripe noted that the African internet economy is expanding quickly, with online commerce in the region growing 21 percent year-over-year, much faster than the global average.

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With 60,000 businesses as customers in Nigeria and Ghana, Paystack currently processes over half of all online transactions in its home market, and has plans to expand across the continent.

"This acquisition will give Paystack resources to develop new products ... and consolidate the hyper-fragmented African payments market,” said Matt Henderson, who heads up Stripe’s operations in Europe, the Middle East and Africa.

Paystack will continue to be operated as an independent company, Stipe said in its statement.

Source
AFP