On Monday, Shola Akinlade, the CEO of one of Nigera’s largest tech firms; Paystack, launched his new product, Zap, a payment system that allows international visitors in Nigeria to make seamless payments with foreign cards. Unfortunately, since then the product has been met with an unexpected controversy.
- Shola Akinlade, CEO of Paystack, launched Zap, a payment system for international visitors in Nigeria.
- Another tech company, Zap Africa, claims Zap infringes on their trademark and threatens legal action.
- Zap Africa CEO expresses concerns about protecting African innovation and defending their trademark.
Those versed in the advancement of the Nigerian tech ecosystem are all too familiar with the name Shola Akinlade, one-half of the duo behind the revolutionary fintech, Paystack, which was acquired for a whopping $200 million.
This is perhaps the reason why On Monday, when Zap was launched, the product was touted as a game changer.
Reports indicated that the app would allow users to send money to any Nigerian bank account within 10 seconds.
As mentioned earlier, the app also allows international visitors in Nigeria to make seamless payments using international cards and Apple Pay, eliminating the friction many travelers face when trying to pay like a local.
“For years, Paystack has powered smooth, reliable payments for businesses across Africa, processing billions of Naira monthly. With Zap, we’re extending that same reliability, speed, and ease to everyday people, making payments via bank transfers simpler and more intuitive than ever before,” Shola Akinlade, stated.
While this seemed like a welcomed development in the Nigerian fintech space, trouble struck in paradise just a day after the launch of the app.
As one X user put it, the founders of Zap must have failed to do due diligence before branding the product, as it would seem that the name Zap already exists.
What ZapAfrica said
Before the user’s call-out on X, ZapAfrica, seeing another product enter the market with its name decided to retort, noting that “there is only one Zap in Africa.”
They had also noted that they were formally challenging Paystack, for using the trademarked “Zap.”
“We have worked tirelessly to build Zap Africa into a trusted name in the crypto and fintech space. Seeing just another company adopt our name without authorization threatens our brand identity and confuses customers,” said Tobiloba Asu-Johnson, CEO at Zap Africa.
“We strove to resolve this amicably, but we are prepared to take legal action to defend our trademark,” he added.
“This is bigger than a name, it’s about protecting African innovation from being erased. Zap was built for the people, and we’ll defend it with everything we’ve got,” said Moore Dagogo-Hart, CTO of Zap Africa.
As the dust settles on this unexpected naming controversy, all eyes in Nigeria’s tech community are focused on how Paystack, an industry heavyweight, can navigate this incident.
With Zap Africa considering legal action and expressing concerns about the protection of African invention, the stakes are high.
As the drama unfolds, one thing is certain: Paystack’s response might create a long-term precedent for how disputes are resolved in Nigeria’s thriving fintech sector.
