Financial technology company that offers payment processing services to businesses in Africa, Paystack, has parted ways with up to 33 employees in Europe and the UAE, as it reduces its operations outside of Africa.
The company revealed that this move was a strategic one, which was necessitated to prioritize team members within the markets it serves, to localize costs and to get closer to customers.
Announcing this decision, Paystack CEO Shola Akinlade wrote,
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“Today was a difficult day at Paystack. We’re reducing our operations outside of Africa and will be parting ways with up to 33 employees in Europe and the UAE. In the last 3 years, our hiring philosophy was to recruit great talent regardless of location, including opening an engineering hub in Dubai. We’re changing our operating model to prioritize locating team members within the markets we serve, to localize costs and get closer to customers.
“We’re sparing no expense to minimize disruption to the lives of team members. The severance package includes 4 months’ salary, accelerating equity vesting, extending health insurance by 3 months, and more. These are some of the most talented people I’ve ever worked with, and my goal is to ensure that every single one finds new roles as soon as possible. I’m personally happy to vouch for each one and do reference calls as needed”.
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To facilitate the job transition for affected workers, Paystack invited companies seeking exceptional talent by dropping a Google form.
Paystack currently maintains an operational footprint in four markets which include; Nigeria, Ghana, Kenya, and South Africa. The company, characterized by its lean operation, has experienced a moderate expansion in staff strength which has contributed to a series of product releases over the past three years.
Notable developments include the introduction of an app for Shopify, the launch of a virtual terminal, and, most recently, the addition of a direct debit feature. Paystack has also forged integrations with global software and payment solutions, with notable examples being ApplePay. The company is presently undergoing private beta testing in Ivory Coast, Egypt, and Rwanda as part of its strategic expansion efforts.
Ever since Paystack was acquired by Stripe in 2020 for over $200 million, the fintech company has continued to operate under its brand name, expanding into other markets, majorly across Africa.
The company’s remarkable success in online payments has prompted it to continue to replicate the success in other African markets as it deepens its foothold on the African continent.
Paystack revealed that the company’s expansion strategy is based on thorough research, considering factors such as GDP, card penetration, population size, and the strength of the startup and developer ecosystem.
Notably, the startup focuses on penetrating markets that serve as regional hubs and are strategically positioned to facilitate sub-regional growth.
Paystack claims to process over 50% of all online transactions in Nigeria and has achieved remarkable success, which has seen it as a trailblazer in the African tech ecosystem. As a crucial part of the ecosystem, the company continuously seeks ways to roll out innovative products and offerings to foster growth in African tech.