Stripe, the global financial infrastructure giant, has started testing an offering that allows merchants to accept payments in naira without needing to establish a local entity. This development is set to transform how international businesses engage with Nigerian consumers, offering a seamless payment experience in local currency while still settling merchants in their home currency, such as the US dollar. This move addresses a significant pain point for global merchants, who previously needed to incorporate locally in each country to accept payments—a costly and time-consuming requirement that has limited market expansion and led to high rates of cart abandonment. This new feature is currently in its beta phase and is initially available only to U.S. retailers with settlements in USD. However, this marks a significant step toward Stripe’s mission of increasing global internet GDP by reducing barriers to international trade. Founded 14 years ago and dual-headquartered in Dublin and California, Stripe has grown into the world’s most valuable private fintech, boasting a valuation of $70 billion. The company has expanded beyond its core payment processing services to offer an array of financial products, including billing and tax management solutions. Last year, Stripe processed payments totaling $1 trillion—equivalent to 1% of the global GDP. Nigeria is one of only two markets where Stripe has rolled out this feature, the other being South Korea. Despite the differences between the two countries—Nigeria’s population of 200 million vastly outnumbers South Korea’s 50 million, yet South Korea’s GDP is 3.5 times larger—both markets represent strategic opportunities for Stripe. In Nigeria, Stripe has a foothold through its subsidiary Paystack, a leading payment processor, while in South Korea, Stripe already supports VAT collection. To fully operationalize its services in these regions, Stripe will need to complete its offering by securing additional local partnerships. In Nigeria, the company is expected to find a Merchant of Record (MoR) to complement Paystack’s capabilities, while in South Korea, it needs to acquire local payment processing capabilities.
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