Zap Africa, a cryptocurrency exchange that facilitates the conversion of crypto to Naira, has issued a legal threat to Paystack, a leading fintech company, over the use of the brand name “Zap.”
The contention arose following Paystack’s recent launch of “Zap,” a mobile app designed to streamline bank transfers.
Shola Akinlade, CEO of Paystack, described the new app as a tool to make money transfers faster and more reliable, clarifying that it is not a banking service. However, Zap Africa has taken issue with the name, claiming that its brand name is trademarked.
Intent to pursue legal action
Tobi Asu-Johnson, CEO of Zap Africa, announced the company’s intent to pursue 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!” he wrote on X (formerly Twitter).
The official X handle of the cryptocurrency firm also stated, “There is only one ZAP in Nigeria and Africa.”
Zap Africa positions itself as a non-custodial wallet enabling users to seamlessly swap and send cryptocurrency for Naira at competitive rates, supporting transactions globally.
Paystack has yet to release a public statement addressing the allegations or the potential lawsuit.
What you should know
- In May 2024, Paystack led an investment group to acquire Brass, a struggling Nigerian fintech, for an undisclosed sum. Other participants in the acquisition included PiggyVest, Ventures Platform, P1 Ventures, and angel investor Olumide Soyombo. The acquisition occurred two months after Brass had laid off a portion of its workforce due to economic challenges.
- Founded in 2020 by Sola Akindolu and Emmanuel Okeke, Brass raised $2 million over its four-year run to support entrepreneurs and small businesses with tailored banking solutions.
- Akindolu, the former head of product at YC-backed Kudi, and Okeke, an engineering manager at Paystack (a Stripe subsidiary), designed Brass to cater to traders and fast-growing businesses. In October 2021, Brass secured a $1.7 million funding round to scale its services further.
According to Paystack, the new investment group provides both capital and expertise to drive Brass into its next phase of growth. Following the acquisition, Akindolu confirmed that Brass would continue operating under a new leadership team as its founders transition to pursue other opportunities.
While Paystack focuses on expanding its suite of financial products and supporting Brass’s growth, the legal dispute with Zap Africa underscores the challenges of brand identity and intellectual property within the fintech and cryptocurrency sectors. Industry observers will be watching closely as the situation develops.
