Quick Summary: Zap Africa has threatened legal action against Paystack over the use of the brand name “Zap.”
The cryptocurrency exchange claims the name is trademarked and intends to defend its rights.
Paystack has yet to respond to the allegations surrounding its newly launched payment app.
The dispute highlights the growing importance of brand identity in the fintech and crypto sectors.
Zap Africa Challenges Paystack Over “Zap” Brand Name
Zap Africa, a cryptocurrency exchange specializing in crypto-to-Naira conversions, has issued a legal threat to Paystack, a leading fintech company, over the use of the brand name “Zap.”
The dispute arose after Paystack recently launched “Zap,” a mobile app aimed at simplifying bank transfers.
Paystack’s Perspective on the “Zap” App
Shola Akinlade, CEO of Paystack, described the new app as a tool designed to make money transfers faster and more reliable, emphasizing that it is not a banking service. Despite this clarification, Zap Africa has objected to the app’s name, arguing that “Zap” is a trademarked brand under their ownership.
Zap Africa’s Legal Intent
Tobi Asu-Johnson, CEO of Zap Africa, publicly announced the company’s intent to take legal action.
“Our name is trademarked, and we’re on it. Zap’s legal team will be reaching out to Paystack shortly. Huge shoutout to everyone who brought this to our attention. Your support is invaluable!” Asu-Johnson stated on X (formerly Twitter).
The official X handle of Zap Africa reinforced this stance, declaring, “There is only one ZAP in Nigeria and Africa.”
Zap Africa operates as a non-custodial wallet that enables users to swap and send cryptocurrency for Naira at competitive rates while facilitating transactions on a global scale.
Paystack’s Silence on the Allegations
As of now, Paystack has not issued a public response regarding the allegations or the potential lawsuit.
Background on Paystack’s Recent Acquisition
In May 2024, Paystack led an investment group to acquire Brass, a struggling Nigerian fintech company, for an undisclosed amount. The acquisition group included PiggyVest, Ventures Platform, P1 Ventures, and angel investor Olumide Soyombo. This move came two months after Brass had laid off part of its workforce due to economic difficulties.
Founded in 2020 by Sola Akindolu and Emmanuel Okeke, Brass raised $2 million over four years to support entrepreneurs and small businesses with customized banking solutions. In October 2021, Brass secured $1.7 million in funding to expand its services further.
Following the acquisition, Paystack stated that the investment group would provide both capital and expertise to drive Brass into its next phase of growth. Meanwhile, Akindolu confirmed that Brass would continue operating under new leadership as its founders transitioned to other opportunities.
Industry Implications
While Paystack expands its suite of financial products and works on scaling Brass, the ongoing legal dispute with Zap Africa highlights key challenges in brand identity and intellectual property within the fintech and cryptocurrency sectors. Industry observers will be closely monitoring how the situation unfolds.
