Although Lagos based startup Paystack has sought to become the Stripe of their region, they have attracted the company itself enough to contribute in $8 million in funding for them. It is not surprising, as in only 2 years, the company has moved to process 15 percent of all online payments in Nigeria.
With the funding, the company plans to continue growing and expanding to other countries beginning with Ghana. The funding round was lead by Stripe, who seems to be seeking global startups that follow a similar business model. Since Africa is a relatively complicated market to break into, this might be the right move in order for Stripe to have a more seamless integration into this new market.
Shola Akinlade is Paystack’s CEO, and is described by Stripe to be incredibly customer service oriented and impatient. He studied computer science in university and worked for Heineken before starting his own business.
Paystack seems to have little competition in breaking through the African market. Even Nigeria, the continent’s biggest economy, has has a hard time with digital commerce. Paystack has their work cut out for them in expanding on this big area of opportunity.