Paystack has announced plans to issue stablecoins and expand its digital money services under a new parent company, The Stack Group. The announcement coincides with the company’s 10th anniversary, highlighting its goal to provide faster and more efficient financial tools for businesses and consumers across Africa.
The company is working to secure a stablecoin licence, which would allow it to create digital cash pegged to stable values such as the U.S. dollar. These digital assets can be used for instant payments, cross-border transfers, and other transactions without relying on traditional banking systems. Paystack said the licence is part of its broader strategy to make money movement smoother and more accessible for merchants and everyday users.
The Stack Group Structure
To support these ambitions, Paystack has reorganised under The Stack Group, a holding company that now oversees several business units. Alongside the core Paystack payment platform, the group includes Zap, a consumer payments app, and Paystack Microfinance Bank, which holds a full banking licence. The company has also set up TSG Labs, a technology arm focused on developing new products, exploring digital assets, and integrating artificial intelligence into its services.
Paystack began in 2016 to simplify online payments for African businesses. Since being acquired by Stripe in 2020, the company has expanded operations into multiple countries, including Nigeria, Ghana, Kenya, Côte d’Ivoire, South Africa, Egypt, and Rwanda, while maintaining group-level profitability. The introduction of stablecoins is the latest step in extending its financial infrastructure to more users.
Stablecoins provide digital money that retains a predictable value and can be used even in countries with volatile currencies or limited banking access. In Africa, stablecoins are increasingly used for remittances, business payments, and other financial services, with transaction volumes reaching billions of dollars annually.
For Paystack, regulated stablecoins could reduce transaction costs, speed up cross-border transfers, and provide programmable money that integrates with its existing platform.
The company says this would allow merchants and consumers to send and receive funds quickly and securely, while offering developers tools to build new services using digital cash.
Paystack is awaiting regulatory approval for its stablecoin licence. Once approved, the company will begin rolling out digital cash services across Africa, marking a significant expansion beyond traditional payment processing into blockchain-based financial solutions.
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