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Paystack’s Strategic Shift: From Payments Processor to The Stack Group (TSG)

Paystack’s Strategic Shift: From Payments Processor to The Stack Group (TSG)

Paystack, the Nigerian fintech company acquired by Stripe in 2020, has officially restructured its business by forming a new holding company called The Stack Group (TSG)—marking one of the most significant evolutions in its ten-year history.

The Stack Group now serves as the parent organization for four major entities:

  • Paystack—the original merchant payments platform

  • Zap — a consumer payments app

  • Paystack Microfinance Bank (MFB) — a licensed banking unit

  • TSG Labs—a venture and innovation studio focused on emerging technologies, including artificial intelligence and stablecoins.

This restructure is significant for several reasons:

  1. Strategic diversification: Paystack has evolved from a single-product payments processor into a multi-brand technology group addressing broader financial and digital infrastructure needs in Africa.

  2. Group-level profitability: The move coincides with Paystack’s achievement of sustained profitability and positive cash flow — a rare milestone for large fintechs in the region.

  3. Revised ownership: While Stripe remains a major stakeholder, the TSG structure introduces shared ownership with founder & CEO Shola Akinlade and existing Paystack employees, internally known as Stacks.

Overall, The Stack Group reflects a deliberate strategic pivot toward innovation and broader financial services—positioning the company to capture opportunities well beyond its original payments ecosystem.

OKAI JOHN

OKAI JOHN

Hi, I’m Okai John, Editor-in-Chief at Breaking Point News, a platform born from my deep passion for Africa, sports, travel, and insightful commentary.
Through stories that inform, inspire, and connect, I aim to highlight the voices, journeys, and victories that are shaping the African experience today.

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