By Susan Olalere 
The Making of a Fintech Showdown
African fintech is a battlefield where innovation meets dominance. Startups rise, giants move, and sometimes, the two collide. That’s exactly what’s happening between Zap Africa, a bold new player in Nigeria’s fintech space, and Paystack, the billion-dollar payments giant owned by Stripe.
At the center of this battle? A name—“Zap.”
What might seem like a simple trademark dispute is actually a power struggle that reveals the challenges of surviving in Africa’s fast-growing tech scene. It’s the classic story of David vs. Goliath, but this time, it’s playing out in courtrooms and boardrooms, and its outcome could shape the future of fintech branding in Africa.
The Rise of Zap Africa: A Startup That Refused to Stay Small
Zap Africa didn’t just show up one day and decide to take on a billion-dollar company. Its story is one of resilience, innovation, and an unwavering belief in creating a financial system where Africans have full control over their digital transactions.
Founded by Tobiloba Asu-Johnson, Zap Africa made its mark by launching Nigeria’s first non-custodial exchange and wallet. Unlike traditional fintech platforms that hold users’ funds, Zap Africa’s model allows users to manage their assets without third-party interference.
This approach quickly gained traction, especially among crypto traders and digital entrepreneurs who had been burned by centralized platforms freezing accounts, imposing limits, or even disappearing overnight.
Zap Africa wasn’t just a fintech startup; it was a movement. It stood for financial autonomy, transparency, and innovation—values that resonated with a new generation of Africans embracing digital finance.
And then came Paystack.
How a Name Sparked a Legal Battle
For years, Zap Africa built its brand around its name and unique identity. The company’s marketing slogans, such as “Just Zap It” and “You just got Zapped,” became deeply associated with its services.
Then, Paystack entered the picture.
In 2024, the payments giant began using the name “Zap” in its branding. This wasn’t just a coincidence, according to Oke Umurhohwo, Zap Africa’s Head of Marketing and Communications.
“Paystack didn’t just use the name. They copied our branding phrases, our identity, and attempted to rewrite the narrative we’ve spent years building.”
Realizing what was happening, Zap Africa issued a cease-and-desist letter on March 26, demanding that Paystack stop using the name “Zap.” But to their surprise, Paystack claimed it had already initiated legal steps to trademark the term.
That’s when Zap Africa decided to fight back.
Big Tech vs. Startups: The Power Struggle No One Talks About
The battle between Zap Africa and Paystack is about more than just intellectual property. It’s about the power dynamics that shape Africa’s tech ecosystem.
“This isn’t just about legality. It’s about how big companies use their influence to erase smaller competitors,” says Zap Africa’s CEO, Tobiloba Asu-Johnson.
And he has a point.
Across Africa, smaller startups often find themselves at the mercy of bigger players. The larger firms have the money, the lawyers, and the industry connections to control narratives, push competitors out of the market, and dominate conversations.
We’ve seen this happen before:
- Larger corporations acquiring smaller fintechs just to eliminate competition.
- Startups being forced to rebrand because a bigger company swooped in with a legal claim.
- Innovators watching their ideas get “borrowed” by industry giants with more resources.
Zap Africa, however, refuses to go quietly.
“This isn’t just our fight. It’s a fight for every startup in Africa that has ever been pushed around by a big player,” says Asu-Johnson.
The Legal Grey Area: Who Actually Owns “Zap”?
While Paystack insists it has legal backing, Zap Africa argues that the fintech giant does not hold any valid trademark for the name. In fact, according to Zap Africa’s legal team, Paystack has failed to apply for several key trademark classes where Zap Africa already holds active registrations.
This raises a bigger question: How do African regulators handle intellectual property in the digital age?
- Unlike in the U.S. or Europe, Africa’s trademark laws remain loosely enforced.
- Many startups don’t trademark their names early, leaving them vulnerable to brand hijacking.
- Bigger companies often win by default, simply because they have the resources to outlast smaller competitors in legal battles.
This isn’t just about Zap Africa anymore. It’s about whether African regulators will step up and protect homegrown innovators or allow corporate giants to rewrite the rules.
What’s Next? The Future of the Zap Africa vs. Paystack Fight
Right now, the fintech industry is watching closely. The outcome of this case could set a precedent:
- If Zap Africa wins, it sends a message that African startups can stand their ground against corporate dominance.
- If Paystack wins, it reinforces the harsh reality that smaller players must either comply or disappear.
For now, Zap Africa remains defiant. The company has vowed to take the fight as far as necessary to protect its brand and identity.
Asu-Johnson makes it clear:
“We built this name. We built this brand. And we won’t let anyone take it from us.”
Final Thoughts: Lessons for African Entrepreneurs
This battle should serve as a wake-up call for African entrepreneurs. Protecting your brand is no longer optional—it’s survival.
- Trademark early – Don’t wait until your startup is big to protect your name.
- Be legally prepared – A good product isn’t enough; have legal backing to defend it.
- Fight back when necessary – If a bigger company tries to take what’s yours, don’t back down.
Zap Africa’s fight isn’t just about a name. It’s about proving that African startups have a right to exist, grow, and compete—without fear of being crushed by the giants.
And as the fintech world watches, one question remains:
Will Zap Africa survive this fight, or will it become just another cautionary tale?
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