Nigeria’s Paystack takes $1.3m for payments platform

Nigerian startup Paystack has picked up $1.3m in a new round of seed funding from local and international investors.

The Lagos-based company aims to tackle the fragmented nature of online payments in Nigeria and across Africa by allowing merchants to accept multiple types of online payments.

Paystack is the first ever Nigerian company to graduate from Y Combinator’s Silicon Valley-based accelerator programme.

It took on $120,000 from the famed incubator last November.

Since launching in bate mode in January the company claims to have attracted more than 1,500 businesses and to have processed more than ₦1bn ($3m).

Paystack recently announced an online payments gateway with Shopify, one of the world’s largest e-commerce firms.

The deal is designed to allow Nigerian companies to set up e-commerce operations though the service and accept payments through Paystack.

The company will use the capital to expand its engineering team to drive product development and build out its sales and marketing efforts, having to date grown by word of mouth alone.

Paystack is currently only operational in its home market but is in early talk in Ghana and plans to launch in several more countries in 2017.

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