Technology
Nigeria’s Paystack Gets Fresh $8m to Expand African Operations
By Dipo Olowookere
A Nigeria-based startup providing payments tools to businesses in Africa, Paystack, has secured fresh $8 million in Series A funding, bringing its total investment to date to more than $10 million.
Paystack will invest the new round of funding in scaling its engineering team, further deepening its payments infrastructure, and accelerating their expansion across the continent.
A statement issued by the firm’s PR agency disclosed that the round was led by Stripe, and includes Visa, follow-on funding from Tencent and Y Combinator, as well as angel investors Tom Stafford (Managing Partner at DST Global), Gbenga Oyebode (founding partner of Aluko & Oyebode and Board member of MTN Nigeria), and Dale Mathias (Co-founder, Innovation Partners Africa).
Existing investors include Tencent, Y Combinator, Comcast Ventures, Catalyst Fund, Blue Haven Ventures, and Ventures Platform.
Within a little over two years, Paystack’s all-African team has grown to process nearly 15 percent of all online payments in Africa’s largest economy, powering tens of thousands of businesses of all sizes including telcos, airlines, and government agencies.
Paystack provides powerful APIs to help developers quickly build modern payments experiences online. With only a few lines of code, developers can create custom checkout experiences, build automated recurring billing systems for subscription products, instantly send bulk transfers to any bank account in Nigeria, verify the identity of customers through five different verification APIs, and much more.
Through the company’s sleek payments interface, customers can pay with local and international cards, or directly from their bank accounts.
Paystack also supports localized payment channels, including mobile money, QR code, and USSD payments. Every payment is screened by sophisticated fraud-monitoring systems to protect merchants from chargebacks, and Paystack’s direct bank integrations ensure the highest transaction success rates.
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.
CEO and co-founder of Paystack, Mr Shola Akinlade, disclosed that, “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.”
Mr Akinlade added that, “As Paystack looks to expand rapidly across the continent, we’re thrilled to have the benefit of the deep experience of Stripe, Visa, and Tencent.
“Our ambition is to give African merchants the tools and services they need to go toe-to-toe with the best businesses in the world, and win.”
Also commenting, CEO of Stripe, Mr Patrick Collison, stated that, “The 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.”
Head for Strategic Partnerships, Fintechs and Ventures for Visa in Central & Eastern Europe, Middle East and Africa (CEMEA), Otto Williams, disclosed that, “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.
Williams added that, “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.”
Technology
Nigeria, US Seal $2.1m Infrastructure Grant for Broadband Penetration
By Adedapo Adesanya
Nigeria and the United States signed a new $2.1 million grant to lay at least 90,000 km of new fibre optic backbone infrastructure across Nigeria as part of efforts to boost broadband penetration to 70 per cent.
In a statement on Tuesday, the agreement was signed by Nigeria’s Minister of Communication, Innovation, and Digital Economy, Mr Bosun Tijani; and the US Deputy Secretary, Mr Kurt Campbell, at the inaugural US-Nigeria Technology Dialogue in Washington, D.C. on January 10.
The project, funded by the US Trade and Development Agency, supports Nigeria’s National Broadband Plan 2020-2025 with the goal of increasing the country’s broadband penetration rate from 42.27 per cent to 70 per cent and ensuring that at least 90 per cent of Nigeria’s population has access to affordable and reliable broadband coverage.
The US-Nigeria Technology Dialogue is designed to enhance bilateral cooperation in critical technology sectors and builds upon Mr Campbell’s earlier visit to Abuja for the sixth US-Nigeria Binational Commission (BNC) co-hosted with Nigerian Foreign Minister Yusuf Tuggar on April 29-30, 2024, the US Department of State and Government of Nigeria-funded Global Inclusivity and Artificial Intelligence (AI) event held in Lagos on September 9-11, 2024, and the United Nations General Assembly (UNGA) AI event hosted by the US Department of State on September 23, 2024, in which Minister Tijani participated.
Now, the latest dialogue discussed enhancing the resilience and security of essential services and facilities; promoting digital trade, e-commerce, and innovation-driven economic growth; developing a skilled workforce to meet the demands of the digital age; expanding artificial intelligence partnership related to capacity building, infrastructure, and rights-respecting approaches to governance; and promoting information integrity.
The statement added that following the formal Technology Dialogue, the delegations joined a roundtable discussion with industry representatives hosted by the US Chamber of Commerce which saw participants included representatives from over 25 US and Nigerian companies active in technology sectors, highlighted opportunities for public-private partnerships and investment solutions to spur innovation and promote digital talent development through the US-Nigeria commercial partnership.
A second-panel discussion on the role of critical infrastructure in advancing the use of AI examined the interplay between the infrastructure that is essential to the development of AI and the governance frameworks that can help spur the deployment of emerging technologies to support inclusive growth.
Both countries agreed to hold a virtual expert exchange on AI-enabled biotechnology that will explore how the convergence of AI and biotechnology can spur progress in addressing global health, food security, and science – with a focus on sub-Saharan Africa.
Technology
Interswitch Supports Push for Vibrant Digital Ecosystem in Africa
By Aduragbemi Omiyale
One of Africa’s leading integrated payments and digital commerce companies, Interswitch, has expressed its commitment to promoting a vibrant digital ecosystem on the continent.
The Nigerian fintech firm reaffirmed this by supporting the recently concluded Google Developer Groups (GDG) DevFest Ibadan, Oyo State.
The flagship conference, which held at the Aweni Arena in Ibadan, brought together developers, tech enthusiasts, and industry leaders for a dynamic day of knowledge sharing, networking, and exploration of cutting-edge technologies, including artificial intelligence, machine learning, cloud computing, and mobile app development.
Now in its fifth edition, DevFest Ibadan has grown in scale and impact over the years, attracting thousands of attendees from across Oyo State and beyond.
Participants enjoyed a variety of engaging activities, including thought-provoking talks, hands-on workshops, and hackathons designed to inspire innovation and foster collaboration.
Interswitch said it threw its full weight behind this programme because of its unwavering commitment to advancing Nigeria’s technology landscape and nurturing the next generation of innovators.
“At Interswitch, we recognise the pivotal role developers and tech communities play in driving innovation across the continent.
“Sponsoring GDG DevFest Ibadan 2024 aligns perfectly with our mission to equip these communities with the tools, platforms, and opportunities they need to innovate, collaborate, and succeed.
“We are committed to promoting a vibrant ecosystem that accelerates Africa’s digital transformation while nurturing the next wave of innovators shaping the future of fintech in Nigeria and beyond,” the Divisional Head for Growth Marketing (Merchants and Ecosystems) at Interswitch, Mr Olawale Akanbi, said.
In her presentation, a Developer Ecosystem Executive at Interswitch, Ms Elizabeth Okaome, highlighted the company’s robust suite of Application Programming Interfaces (APIs) and their use cases, supported with live demos.
Cutting across payments integration, transfers, bill payments and airtime recharge, identity verification or lending services, Interswitch APIs equip developers with tools to enable secure and seamless online and offline payment acceptance).
Another highlight at the event was the introduction of the Quickteller Business Referral Programme, also known as the ‘5 for 5’ Initiative, which offers developers or any referrer an opportunity to earn 5% commission on Interswitch’s share of every transaction charge, for five whole years, while enabling businesses to thrive.
Technology
Nigerians to Know New Tariffs for Calls, Data, SMS Today
By Adedapo Adesanya
Nigerian will today, Friday, January 10, 2025, know what they will henceforth pay to make calls, send SMS, and browse the internet as telecommunication operators have received the approval of the Nigerian Communications Commission (NCC) to raise tariffs.
This will bring an end to the long-term tussle for a hike in tariffs, which telcos wanted to be at 100 per cent, but the Nigerian government rejected.
Industry sources have shared with the media that the new tariffs will be announced by the NCC on Friday.
on Wednesday, the Minister of Communications, Innovation, and Digital Economy, Mr Bosun Tijan, at a stakeholders’ meeting in Abuja, said the NCC would come up with modalities for tariff adjustment in the telecoms industry.
“We’ve look at a number of things in terms of how to ensure that can meaningfully contribute to the development of Nigeria.
“Some of those things include implementing the Executive Order around ensuring that we can protect infrastructure around telecoms, driving up significantly local content and importantly, ensuring the sustainability of the companies themselves that as we see inflation across the world that telecommunications companies, we don’t run them down but we allow them to continue to be sustainable so that they can contribute to our economy.
“You have seen over the past weeks that there has been agitation from some of these companies to increase tariffs, requesting for 100 per cent tariff increase. This is not something that as a government we will be able to subscribe to at the minute,” he stated.
Recently, the chief executive of MTN Nigeria, Mr Karl Toriola, said in an interview that although operators have put forward the 100 per cent suggestion, he doubts that the regulator, the Nigerian Communications Commission (NCC), would accept.
“Now, we’ve put forward requests of approximately 100 per cent and type increases to the regulators,” he said.
The operators have also said the sustainability of the telecommunications industry in Nigeria needs to be addressed, if not, it could negatively impact Nigeria’s economy.
Mr Toriola’s counterpart at Airtel, Mr Dinesh Balsingh, in an op-ed published by this newspaper said it was needed to acquiesce to the proposed tariff adjustments in order to ensure the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers.
“For over a decade, tariffs have remained static despite the dramatic increase in operating expenses, which have surged by over 300% in the last 18 to 24 months alone,” he wrote.
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