Paystack, a Stripe-owned African payment startup, has issued a cease and desist notice to Zap Africa, a crypto startup, amid the controversy around the launch of its new consumer product, Zap by Paystack, on Monday. The notice was sent this morning in response to online chatter by Zap Africa concerning trademark violations.
The product announcement, which was met with mixed reactions, has seen Zap Africa challenge Paystack for negligence in verifying the trademark status of the word “Zap” before naming their product.
Someone familiar with the situation at Paystack explained to Condia over a call that the payment giant was aware that Zap Africa existed and conducted due diligence on the trademark before proceeding.
“We’re confident that we filed for trademark and that we filed in the right category,” the source said. “We registered the [Zap] trademark across multiple classes, including financial services — a class where Zap Africa has no filing registration.”
According to evidence seen by Condia, Paystack filed for a trademark for the name Zap and the Zap logo under six categories, including financial affairs, monetary affairs, insurance and estate affairs. The trademark was filed on December 4, 2023. A check on the Nigerian Corporate Affairs name registry showed numerous businesses with “Zap” in their name.
Another complaint raised by Zap Africa is that Paystack’s new product name is creating confusion for its users. But the source has pushed back, stating that during their due diligence, they found that Zap is not a name any single brand can claim.
“Zap” is a common term widely used in everyday language, making it difficult to associate exclusively with a single brand,” the source said. “Over 40 companies listed on the CAC website include “Zap” in their business names. Records from the Trademarks, Patents, and Designs Registry in Nigeria also show that the word “Zap” has been in use for well over a decade. In fact, a trademark containing “Zap” was filed as early as 2008 by an entirely different entity. So, the name is not exclusive to Zap Africa.”
Condia has contacted Zap Africa for comment and is awaiting a response.
