Paystack Celebrates 10th Anniversary with Launch of The Stack Group as Parent Company

In a landmark move that underscores its evolution from a payments startup to a diversified technology powerhouse, Paystack has announced the creation of The Stack Group (TSG), a new parent holding company. This development coincides with the company’s 10th anniversary, marking a decade of innovation in Africa’s fintech landscape.

Founded in 2016 as a solution to Nigeria’s online payment challenges, Paystack has grown exponentially, especially following its $200 million acquisition by global payments giant Stripe in 2020. The company now processes trillions of naira monthly and operates in five African countries: Nigeria, Ghana, Kenya, South Africa, and Côte d’Ivoire, with regulatory approvals underway for Egypt and Rwanda. These markets represent approximately 46% of Africa’s GDP.

The agreements establishing TSG as the parent company were signed in October 2025 and are pending regulatory approvals. Founding shareholders include Stripe, Paystack’s founder and CEO Shola Akinlade, and existing Paystack employees, known as “Stacks.” This shared ownership model rewards the team building the company while maintaining Stripe’s global backing.

TSG will serve as the corporate umbrella for Paystack’s family of brands, including Paystack (focusing on merchant payments), Zap (consumer payments app), Paystack Microfinance Bank (MFB), and the newly introduced TSG Labs, a venture studio and incubator. While each entity remains operationally independent, they will share expertise, values, and a mission to power African ambition through technology solutions.

The launch follows Paystack’s recent acquisition and rebranding of Ladder Microfinance Bank as Paystack MFB, enabling the group to internalize core financial rails and offer banking and credit services to over 300,000 merchants. This expansion allows for compliant, end-to-end money-movement solutions across the continent. Additionally, TSG Labs will explore emerging technologies like artificial intelligence (AI) and stablecoins, addressing both fintech and non-fintech challenges critical to Africa’s digital future. The company is also finalizing a stablecoin license in a key market.

Since the Stripe acquisition, Paystack’s payment volume has surged more than twelvefold, leading to group-wide profitability and positive monthly cash flow. This financial strength has fueled experiments beyond core payments without impacting unit economics.

What They Are Saying

“The launch of TSG signals a larger scope of ambition for us and sets the tone for the next decade of our company,” said Shola Akinlade in a statement. “Having worked with thousands of companies across the continent since 2016, it is clear that there are significant opportunities to support businesses beyond payments, and TSG enables us to address the challenges African companies face. Thank you to the Stripe team for their continued belief in Africa’s potential and our ability to create transformative technology companies for the continent and beyond.”

Amandine Lobelle, Chief Operating Officer of TSG, added: “The beauty of this model is that it rewards the people who are building the company, while also maintaining the global backing of one of the leading payments companies through this foundational partnership with Stripe.” She emphasized the shift from a single-product company to a multi-brand technology group.

Stripe CEO Patrick Collison praised the move: “As we work to accelerate economic growth, we’re thrilled to support Paystack’s transformation into The Stack Group. Shola is an amazing entrepreneur, and we look forward to powering African ambition alongside him and the team.”

Why It Matters

The restructuring formalizes Paystack’s expansion into consumer payments and banking, allowing each vertical to pursue independent roadmaps without diluting the core payments business. By separating operations under a holding company, TSG simplifies regulatory oversight, as payments, banking, and consumer products have distinct risk profiles and compliance requirements. This structure ring-fences licenses and risks by business line and geography, reducing potential impacts from issues like the ₦250 million regulatory fine previously faced by Zap.

Paystack joins Nigerian tech giants like Moniepoint and Interswitch in adopting holdco models, which facilitate faster growth, acquisitions, and experiments without jeopardizing flagship brands. In a competitive landscape crowded with well-funded incumbents, Paystack views competition as an “infinite game” focused on ambition rather than zero-sum rivalry.

This move reflects broader trends in African fintech, where companies are leveraging profitability to innovate in AI, stablecoins, and beyond, potentially unlocking new revenue streams and supporting underserved markets.

What You Should Know

• Paystack was the first Nigerian startup to join Y Combinator and achieved one of the largest exits in Nigerian tech history with the Stripe acquisition.
• The company has no immediate plans to transfer employees across subsidiaries but will introduce an optional secondment program.
• TSG will have its own board, separate from subsidiaries, ensuring good governance and regulatory compliance.
• Despite entering saturated markets, Paystack leverages its decade-long experience with African businesses, though scaling consumer products may require building offline distribution networks.

As Paystack enters its second decade under The Stack Group, it positions itself to drive transformative growth across Africa, blending fintech expertise with emerging technologies.