- 1 What is Paystack
- 2 The Problem Paystack is Solving
- 3 How Paystack is Solving This Problem
- 4 What Stage Paystack is In
- 5 Paystack Fees
- 6 Paystack Countries
- 7 Paystack Funding
- 8 Paystack Alternative
- 9 Paystack Location
- 10 Final Thoughts on Paystack Payment Gateway
- 11 Further Reading
What is Paystack
- Paystack was started in 2015 in Nigeria with the goal of disrupting the payment industry in Africa. Paystack founders are Shola Akinlade and Ezra Olubi.
- In 2016, it became the first Nigerian company to enter Y Combinator.
- Its platform processes 15% of all online transactions in Nigeria and its goal is to become the biggest payment processor in Africa. Currently, it is one of the fastest growing fintech companies in the country.
- In October 2020, Stripe announced that it had acquired Paystack for $200 million.
The Problem Paystack is Solving
Paystack’s mission is to help local and international companies, entrepreneurs, and schools accept payments online. This is a major problem in Africa, where most transactions are made using cash. In recent years, this is becoming increasingly important, as companies and governments move to accept these digital payments. The challenge is that most African companies don’t have the talent and capability to develop tools and platforms to accept these payments.
How Paystack is Solving This Problem
Paystack solves this problem by creating tools that enable companies of all sizes in Africa to accept payments on their websites and mobile applications. Paystack’s software is configured to accept all digital payments methods like debit and credit card, bank account, bank transfer, Visa QR, USSD, and mobile money.
With its technology, customers can start to accept these payments in less than 30 minutes. In addition, other organizations like schools and universities can easily collect fees from their students online. The company offers all these with a simple and transparent pricing structure. Paystack processes payments from MasterCard, Visa and Verve cards. Paystack South Africa can also process American Express cards.
“We are a payments company. We help merchants in Africa accept payments from their customers. Businesses will connect to Paystack, and almost immediately the customers can pay them with the credit cards, debit cards, and different payment methods.” Shola Akinlade
What Stage Paystack is In
Paystack is currently in the growth phase, where it is working to take market share in supported African countries. In this growth phase, the company has managed to take a significant market share in the Nigerian market, where it processes 15% of all online transactions.
By default, international payments are charged and settled to you in your local currency. Your customer’s bank is responsible for converting their currency and sending us the money in your local currency. However, there are some countries that are able to accept international payments in other currencies.
Paystack pricing is transparent and straightforward. The company only makes money when their customers make money from a successful transaction.
Paystack Nigeria Fees
|Local transactions||1.5% (of the total purchase amount) + NGN100 (₦100 fee waived for transactions under ₦2500/local transactions fees are capped at ₦2000, meaning that’s the absolute maximum you’ll ever pay in fees per transaction)|
|International transactions||3.9% + NGN100|
|Transfers of NGN 5,000 and below||NGN10 per Transfer|
Paystack South Africa Fees
|Local transactions||2.9% (of the total purchase amount) plus ZAR1 (VAT inclusive)|
|International transactions||2.9% (of the total purchase amount) plus ZAR1 (VAT inclusive)|
Paystack Ghana Fees
|Local transactions||1.95% plus GHS 0|
|International transactions||1.95% plus GHS 0|
|Transfer to mobile money and bank account||GHS 10 per transfer|
Is there a Paystack in Kenya? Kenyan technology news website announced in May 2021 that following its launch in South Africa, Kenya might be the next market for Paystack.
Paystack supported countries are Nigeria, Ghana and South Africa. It plans on expanding to new markets. Enter your details here to know when Paystack is available in your country.
Paystack has raised more than $9.4 million since its founding. The company received seed funding of more than $1.3 million from a group of investors that included Tencent, Comcast Ventures, and Singularity Investments. It then raised $8 million from a group of investors like Tencent, Visa, and Stripe. Stripe is an interesting investor because it runs an exactly similar company in the United States.
Paystack is not the first African company aiming to disrupt the payment processing industry. Other African companies in the industry are:
Paystack was founded in Nigeria. Today, it has offices in Lagos, California and Johannesburg.
Final Thoughts on Paystack Payment Gateway
Paystack payment platform is one of the fastest growing fintech startups in Africa. The company has received funding from some of the best fintech companies in the world. As it expands to other African companies, the company will find increased local competition from the likes of Cellulant and Pesapal that have taken a considerable market share.
- Paystack customer care
- Paystack website
- Paystack app
- Paystack test cards
- Paystack careers
- Paystack news on Y Combinator
- Paystack on Twitter
- Paystack on Facebook