By Blessing Okoroafor
In order to achieve better payment tools across African businesses and unlock potentials of its business in Aftics, Nigerian payments company, Paystack, has raised $8 million Series A funding from global payments leaders – Stripe, Visa, and Tencent.
The round was led by Y Combinator, angel investors, Stafford, Managing Partner at DST Global, Tom Stafford; founding partner of Aluko & Oyebode and Board member of MTN Nigeria, Gbenga Oyebode and co-founder, Innovation Partners Africa, Dale Mathias.
The funding will be used to fuel Paystack’s continental expansion, build their payments infrastructure and grow their engineering team.
However, beyond payments, Paystack provides businesses with powerful growth tools in the form of a Dashboard that helps them closely monitor and act on every aspect of their business performance, from granular transaction error data, to detailed customer insights.
Speaking on the development, Chief Executive Officer and co-founder of Paystack, Shola Akinlade said: “As recently as 2015, it was really difficult for a developer or business owner in Nigeria to quickly start accepting online payments.
“We started Paystack because we believe that better payments tools are one of the most important things that African businesses need to unlock their explosive potential. We think of Paystack as an amplifier of the incredible work that African business owners are already doing. With better technology tools, African businesses can be better equipped to play a growing role in the global economy.”
Also speaking, Chief Executive Officer, Stripe, Patrick Collison said Paystack founders are highly technical, fanatically customer-oriented and unrelentingly impatient. “We’re excited to back such people in one of the world’s fastest-growing regions.”
On his own, Head for Strategic Partnerships, Fintechs and Ventures for Visa in Central & Eastern Europe, Middle East and Africa, CEMEA, Otto Williams said Africa is central to Visa’s long-term growth strategy, especially when you consider how cash is still a primary payment option for millions on the continent.
“Our investment in Paystack aligns with the kind of investments we look for – those that will help extend our reach into the global commerce ecosystem as it changes and grows, and that will provide mutually beneficial business opportunities,” Williams said.
According to Paystack, the latest investment has brought their total investment to more than $10 million, while their existing investors include Tencent, Y Combinator, Comcast Ventures Catalyst Fund, Blue Haven Ventures and Ventures Platform.