Zap Africa and Paystack: Trademark Dispute Sparks Debate on IP Awareness in Nigeria’s Fintech Scene

A brewing trademark dispute between crypto startup Zap Africa and fintech heavyweight Paystack is raising eyebrows and prompting questions about Nigeria’s intellectual property (IP) landscape. At the heart of the battle is the name “Zap,” which both companies have branded their offerings around. The situation escalated after Paystack launched a new consumer product named “Zap” in March 2025, prompting Zap Africa—already operating under that name since 2023—to issue a cease and desist letter. Paystack responded with one of its own, setting off a public and legal standoff.

Zap Africa claims they had filed trademarks for “Zap” across key classes, including financial services (Class 36), just before Paystack’s launch. The startup’s founders argue that Paystack not only used the same name but also mirrored their branding elements, creating consumer confusion and threatening their business credibility. On the other side, Paystack maintains it performed due diligence and believed the “Zap” mark was available under the relevant class when it filed. The clash now hinges on timelines and overlapping trademark classes.

Legal experts see the situation as a textbook example of Nigeria’s evolving but under-protected startup ecosystem. They stress the need for early and comprehensive IP filing, especially in competitive sectors like fintech. The case also brings attention to the limitations of Nigeria’s trademark registry and the gaps that leave room for disputes. With IP laws based on first-to-file principles, prior use and brand perception could still factor heavily in court or mediated settlements.

As the tension unfolds, the business impact is already visible. Zap Africa is facing consumer hesitation and fears about its platform’s future, while industry leaders like NACCIMA are pushing for out-of-court mediation. Beyond the immediate conflict, the case serves as a critical lesson for startups: strong tech is only one part of the puzzle—strategic brand protection is just as crucial. The Paystack-Zap Africa showdown is a wake-up call for Nigeria’s tech scene to take IP more seriously.

Source: Nairametrics