Grace Ashiru
African fintech Paystack has reached a pivotal moment in its growth trajectory, announcing profitability alongside the creation of a new holding company structure as payment volumes have multiplied twelvefold since its 2020 acquisition by Stripe.
The Stack Group (TSG), established as the parent entity for Paystack and its expanding portfolio of financial technology brands, represents the company’s strategic shift from single-product payments provider to a diversified technology group serving Africa’s business ecosystem.
Paystack’s transaction volumes tell a compelling growth story. The company recently processed ₦1 trillion in a single month—July 2024—marking a historic first for payment infrastructure in Nigeria. This milestone reflects the dramatic scaling that has occurred since Stripe’s acquisition, with the company now handling tens of billions of dollars annually across multiple African markets.
When Stripe acquired Paystack in 2020 in one of Africa’s highest-profile fintech deals, the startup was already processing several billion dollars annually while serving tens of thousands of merchants across Nigeria and Ghana. The 12-fold increase in payment volumes positions Paystack among the continent’s largest payment infrastructure providers by throughput.
The growth extends beyond volume metrics. Bank transfers now account for over 50% of Nigerian transactions processed through the platform as of 2023, demonstrating how Paystack has evolved its product mix to match local payment preferences across the continent.
Paystack has methodically expanded its operational footprint since the Stripe acquisition, securing licenses and launching operations in Nigeria, Ghana, Kenya, CĂ´te d’Ivoire, and South Africa—markets that collectively represent approximately 46% of Africa’s GDP. The company has also obtained regulatory approvals for Egypt and Rwanda.
Rather than pursuing aggressive geographic expansion, Paystack has prioritized what it describes as “deep local compliance, merchant experience, and reliability” over rapid market entry. This product-first approach appears to have supported the company’s path to profitability while maintaining operational quality across diverse regulatory environments.
TSG’s formation, finalized through agreements signed in October 2025 pending regulatory approvals, brings together multiple entities under unified ownership:
Paystack continues to serve as the merchant-focused payments brand, maintaining its core business of enabling African companies to accept payments online and offline.
Zap focuses specifically on consumer payment experiences, representing a strategic complement to Paystack’s merchant services.
Paystack Microfinance Bank operates banking and credit infrastructure, providing the group with internalized financial rails to support more than 300,000 Nigerian merchants.
TSG Labs serves as the innovation arm for emerging technologies and new product development initiatives.
Founding shareholders of The Stack Group include Stripe, Paystack CEO and founder Shola Akinlade, and existing Paystack employees, maintaining continuity with the company’s original stakeholder base.
The Paystack Microfinance Bank represents a particularly strategic component of the group’s infrastructure. By securing a microfinance banking license in Nigeria, the company can now provide credit facilities and account services directly to merchants while controlling critical banking rails that support compliant money movement across Africa’s fragmented financial systems.
This vertical integration addresses one of the fundamental challenges of operating payment infrastructure across African markets—dependency on third-party banking partners whose capabilities and reliability vary significantly across jurisdictions.
Shola Akinlade framed the TSG launch as a natural progression informed by nearly a decade of merchant relationships. “The launch of TSG signals a larger scope of ambition for us and sets the tone for the next decade of our company,” Akinlade stated. “Having worked with thousands of companies across the continent since 2016, it is clear that there are significant opportunities to support businesses beyond payments.”
The timing aligns with Paystack’s upcoming 10-year anniversary in January 2026, marking the company’s transformation from a Lagos-based startup into a profitable, pan-African fintech group with backing from Stripe, one of the world’s most influential payments companies.
Paystack’s profitability announcement carries significance for Africa’s broader fintech ecosystem, where many high-growth companies have prioritized market share and user acquisition over sustainable unit economics. The company’s ability to achieve profitability while maintaining rapid growth demonstrates that scale and financial sustainability need not be mutually exclusive in African markets.
The holding company structure also signals potential for further diversification beyond the four initial brands, with TSG Labs positioned to incubate additional products addressing pain points identified through Paystack’s extensive merchant relationships.
As African digital payment volumes continue growing—driven by increasing internet penetration, smartphone adoption, and regulatory support for digital financial services—Paystack’s evolution from payment gateway to financial infrastructure group reflects the maturing opportunities available to companies that successfully navigate the continent’s complex regulatory and operational landscape.
