Paystack, a leading African payment company owned by Stripe, has issued a cease and desist notice to crypto startup Zap Africa, escalating tensions over a trademark dispute. The conflict stems from the recent launch of Zap by Paystack, which Zap Africa claims violates its brand identity and could mislead consumers.
Zap Africa Challenges Paystack Over Name Rights
Following the product announcement, Zap Africa accused Paystack of failing to verify the trademark status of “Zap” before branding its new offering. The startup alleges that Paystack’s actions have created brand confusion, impacting its visibility in the market.
However, an insider at Paystack refutes these claims, asserting that the company thoroughly vetted the trademark before proceeding.
“We’re confident that we filed for a trademark and that we filed in the right category,” said a source familiar with the matter.
“We registered the [Zap] trademark across multiple classes, including financial services, a class where Zap Africa has no filing registration.”
Read more about Paystack’s Zap launch and the initial trademark controversy here.
What the Trademark Records Show
Documents reviewed by Condia reveal that Paystack filed a trademark for “Zap” on December 4, 2023. The filing spans six business categories, including:
- Financial services
- Monetary transactions
- Insurance and estate affairs
Further investigation into Nigeria’s Corporate Affairs Commission (CAC) database shows that multiple businesses already use “Zap” in their names, making it a non-exclusive term.
Is the Name “Zap” Exclusive to One Company?
Zap Africa also argues that Paystack’s use of the name creates unnecessary confusion among customers. However, Paystack maintains that no company can claim exclusive rights over such a commonly used word.
“Zap is a common term widely used in everyday language, making it difficult to associate exclusively with a single brand,” the source stated.
Historical records from Nigeria’s Trademarks, Patents, and Designs Registry confirm that businesses have used the name “Zap” since at least 2008, long before Zap Africa’s emergence.
What’s Next? Legal Action or Resolution?
With both parties standing their ground, it remains uncertain whether this trademark dispute will escalate into a full-blown legal battle or if negotiations will resolve the issue.
For now, Paystack is moving forward with its new product, while Zap Africa explores its legal options to challenge the move.
