Online retail is a booming industry in the U.S. with sales expected to increase by 45 percent this year, but in Africa only about 1% of all transactions happen online. So, two Nigerian entrepreneurs have developed a product that offers a centralized way for African online merchants to accept online payments, and they just received $1.3 million in seed investment to help fund their company which is based in Lagos, Nigeria.
Shola Akinlade and Ezra Olubi co-founded fintech (financial technology) startup Paystack. The company’s product streamlines the process of online payments, which is often fragmented in Africa. As Africa’s economy continues to grow, the online payment system will be extremely helpful to many online businesses across Africa, including on-demand services, e-commerce, travel and hospitality, financial services, or entertainment.
Online shopping along with online payments are expected to increase in Africa, with 400 million more smartphone connections in Nigeria by 2020. The two entrepreneurs are happy to be part of the business boom. With the $1.3 million in seed investment, they can now expand their engineering team in Lagos, Nigeria; grow their sales and marketing operations; and increase product development and customer service.
Africa is the now the fastest growing middle class in the world
According to the African Development Bank, Africa is now the fastest growing middle class in the world. Their spending has increased 100 percent in less than 20 years. Last year, Africa made $150 billion in business revenues. With a rapidly growing digital mobile economy in Nigeria, Akinlade and Olubi are on the cutting edge of a rapidly growing economy as well.
For more details about Paystack visit www.paystack.com