Paystack Streamlines Operations

  Paystack

African fintech firm Paystack is scaling back its operations outside of Africa, leading to a reduction in its European and Dubai workforce. The move is part of an effort to streamline the company in markets where it had previously employed technical roles to bolster its primary African operations.

A Change in Strategy

Paystack’s CEO and co-founder, Shola Akinlade, disclosed via a tweet that the company has reduced its workforce by 33 employees. This decision comes after the company’s acquisition by U.S.-based fintech Stripe and subsequent geographical expansion, which included establishing offices in Accra, Cape Town, Dubai and Nairobi. In addition to this, it had also recruited staff in Europe through remote operations and established an engineering hub in Dubai.

Consolidating its Presence in Africa

Presently, Paystack operates in four African markets: Nigeria, Ghana, Kenya, and South Africa. The company, known for its lean operation model, has seen a modest increase in staff strength, leading to a series of product launches over the past three years. These include an app for Shopify, a terminal device, and a direct debit feature. Paystack has also built integrations with global software and payment solutions, including ApplePay. Currently, it is undergoing private beta testing in Ivory Coast, Egypt and Rwanda as part of its strategic expansion efforts.

Supporting Affected Employees

Despite the company’s progress, the Stripe subsidiary, which has over 150 employees according to LinkedIn, felt it was time to change strategy. “We’re changing our operating model to prioritize locating team members within the markets we serve, to localize costs and get closer to customers,” Akinlade stated. The CEO also confirmed that those affected by the workforce reduction would receive a severance package that includes four months’ salary, accelerated equity vesting, and extended health insurance by three months. Akinlade further expressed his commitment to ensuring the affected employees find new roles as soon as possible.