Paystack faces legal challenges from Zap Africa, a cryptocurrency exchange, over the use of the name "Zap" for its new mobile app. Zap Africa, claiming exclusive trademark rights, plans to take legal action. Experts discuss the implications of the trademark dispute and its potential impact on Nigeria's fintech scene.
A possible legal dispute has arisen between Paystack and Zap Africa over the use of the name "Zap." Paystack recently launched a mobile application, also named Zap, designed to simplify and speed up bank transfers. The company’s CEO, Shola Akinlade, explained that the app focuses solely on enhancing money transfers, not on offering banking services.
However, Zap Africa, a cryptocurrency platform founded in 2023, quickly reacted to Paystack's choice of the name. The exchange firm claims to hold the trademark for "Zap" in Nigeria and across Africa. Zap Africa’s CEO, Tobi Asu Johnson, announced that their legal team would be reaching out to Paystack, asserting that the use of the name could infringe on their trademark rights.
Legal experts pointed out that trademark disputes in Nigeria hinge on whether the name has been officially registered and whether the names could cause confusion among consumers in the same industry. They noted that even with a registered trademark, the scope of exclusivity would depend on how the names are used in related sectors.
At present, Paystack has not issued a public statement on the matter. The case could have significant implications for both the fintech and cryptocurrency sectors in Nigeria, depending on the court's assessment of trademark rights and consumer confusion.
