"It would take a minimum of three weeks for a business to start accepting payments online, from filling paper forms to making up-front payments to going through a complex integration process," Paystack co-founder Shola Akinlade told the IFC. Paystack, which he started with Ezra Olubi, turned that into minutes. Stripe bought it in October 2020 in a deal reported at more than $200 million.
Move 1: Attack the waiting time
Paystack let businesses accept card, debit card and mobile money payments on their websites and apps in under 30 minutes, the IFC reports. The pitch was not a lower fee. It was getting paid this week instead of next month.
Move 2: Serve the builders first
Paystack took off because young startups like PiggyVest, Supermart.ng and the ride-hailing service Jekalo needed payments to build their own products, TechCabal reports. Winning other founders early meant Paystack grew as they grew, and they recommended it to the next wave.
Move 3: Then serve businesses with no developer
"On realizing that most businesses don't have access to developers, we built a simple tool that allows a business [to] create a payment link they can add on their website or share with their customers on social media without needing a developer," Akinlade told the IFC. A link shared on WhatsApp or Instagram opened Paystack to millions of small sellers who would never touch an API.
Move 4: Hire for craft
Akinlade recruited hungry new developers alongside ex-bankers and experienced fintech engineers, and invested in design and storytelling, TechCabal reports. By November 2020 Paystack was processing five times what Nigeria as a country did in payments before it existed, TechCabal reports, with clients including MTN, Bolt and Domino's.
