San Francisco-headquartered financial services and Software-as-a-Service company, Stripe, has acquired Nigerian Fintech company Paystack in a deal reportedly exceeding US$200-million. The acquisition is subject to standard closing conditions, including regulatory approvals.

Confirming the transaction, Paystack said the acquisition that will accelerate online commerce across Africa is the latest move in Stripe’s international expansion, as Paystack will be Stripe’s catalyst for growing internet commerce in Africa.

Stripe’s first publicly known involvement with Paystack was when, in 2018, it led Paystack’s Series A financing round during which the company raised US$8-million.

Stripe CEO, Patrick Collison commended the rapid growth of Africa’s tech ecosystem. “The African tech ecosystem is expanding very rapidly. We and the Paystack team are eager to invest in a big way over the years to come,” Collison said on Twitter.

Matt Henderson, Stripe’s business lead in EMEA, noted Paystack’s rapid growth. According to the Fintech company, it now allows more than 60,000 businesses in Nigeria and Ghana to securely collect online and offline payments, launch new business models, and deepen customer relationships.

Paystack clams that it is already processing more than half of all online transactions in Nigeria.

“In just five years, Paystack has done what many companies could not achieve in decades. Their tech-first approach, values, and ambition greatly align with our own. This acquisition will give Paystack resources to develop new products, support more businesses and consolidate the hyper-fragmented African payments market. We can’t wait to see what they will build next and how their growth can turbocharge the African tech ecosystem,” Henderson said.

Under the terms of the acquisition, Paystack will continue to operate independently, growing their operations in Africa and adding more international payment methods. Paystack’s capabilities will subsequently be embedded in Stripe’s Global Payments and Treasury Network (GPTN) which is a programmable platform for global money movement that currently spans 42 countries.

"Paystack is a growth engine for modern businesses in Africa, and we couldn't be more excited to join forces with Stripe, whose mission and values are so aligned with ours, to nurture transformative businesses on the continent,” said Shola Akinlade, CEO and co-founder of Paystack.