Our MD's contribution to Global Finance Magazine article on Stripe's Acquisition of Paystack
Following US based Stripe's acquisition of Nigeria based Fintech Paystack, Global Finance Magazine has, on 07th October 2020, issued an article entitled 'US Payments Giant Stripe Acquires Nigerian Fintech Paystack.' The article included commentary and insight from our MD Zekarias Amsalu on what this acquisition meant for the future of Fintech in Africa.
Answering why Africa's Fintech is an attractive investment magnet for international investors like Stripe, the report quoted Zekarias as excerpted below:-
'...Zekarias Amsalu, founder of investment consultancy Ibex Frontier and co-organiser of the Washington, D.C.-based Africa Fintech Summit, concurs: “As a 'mobile first' continent with 66% unbanked population and leading the world with mobile money, Africa's fintech ecosystem has ripened for venture and strategic investments, now accelerated by the COVID-19 pandemic that highlighted fintech's power of digitization and contactless transactions. The acquisition of Paystack only shows that global players and investors are now noticing and rushing to get into this very important market that will define success of all internet businesses in the decades to come. As a continent that has around 21% average adult mobile money penetration, compared to 2% global average, investment into fintech space like Paystack is only the start.".....'
Commenting on the future of fintech investment in Africa and predicting where the next wave of Fintech investment in Africa would come from, Zekarias had the below insights to share:-
' According to Amsalu, the acquisition of Paystack ”is not a one-off and Africa will witness several more strategic acquisitions and investment in the months and years to come. Stripe has been 'dating' Paystack, as it were, for about 2 years since their Series A investment in 2018 that led to successful 'I do' in a form of acquisition. Several other global fintech and tech companies—including Visa, Mastercard, Paypal, Tencent—have been 'dating' other leading African fintech startups by participating in investment rounds and in my view the next wave of acquisition comes from those 'dating' expeditions as that partnership gives international investors privileged access to strategy, technology, execution and future cash flow. I expect some of these investors will start to woo the fintechs they invested in and follow Stripe's footstep in forming other 'I do's.” '
Read the full article HERE.