On Monday, March 24, 2025, Paystack announced the launch of its new consumer product, Zap, an exciting foray into the B2C space for one of Africa’s biggest fintechs.
However, the excitement about Zap waned as the naming overlap with Zap Africa was revealed.
Zap Africa, a Nigerian crypto startup that has existed for over three years, seized the opportunity to announce and differentiate itself with a now-viral X post: “There is only one ZAP in Nigeria and Africa,” which has now amassed 998,800 views.
However, information shared with Techpoint Africa by sources with knowledge of the matter reveals that while Zap Africa trademarked the name Zap, it did so in the wrong class.
The source said Zap Africa trademarked in Class 35, which includes businesses in advertising, business management, and retail.
Per Condia, Paystack reportedly issued a cease and desist to Zap Africa as it has filed for a trademark in multiple categories, including financial services, which is in Class 36.
In an interesting turn of events, documents only seen by Techpoint Africa show that Zap Africa also issued a cease and desist to Paystack for infringement of the Zap trademark.
“We write to bring to your immediate attention a matter regarding Paystack Payments Limited’s (Paystack) unauthorised use of our Client’s trademark, “ZAP”. This letter serves as formal notice to immediately cease and desist from further infringing our Client’s trademark rights,” the document reads.
Zap Africa’s CEO, Tobiloba Asu-Johnson, insists that his company trademarked first and in the right classes.
How names and trademarks work in Nigeria
In Nigeria, the processes of naming a company and registering a trademark are governed by legal frameworks, each serving specific purposes in business identification and protection.
When establishing a business in Nigeria, registering the company name with the Corporate Affairs Commission (CAC) is a mandatory step. This registration ensures that no two entities operate under identical or deceptively similar names, thereby preventing public confusion.
However, it is important to note that while CAC registration grants the right to use a business name, it does not provide proprietary rights over the name beyond the scope of corporate identification.
To secure exclusive rights over a brand name, logo, or slogan, businesses must register these elements as trademarks with the Trademarks, Patents, and Designs Registry under the Federal Ministry of Industry, Trade, and Investment.
A trademark serves as a distinctive sign that differentiates the goods or services of one entity from another. To obtain a trademark, companies need to conduct research to ensure that the proposed trademark is not already in use, file an application, wait for approval, publish it in the Trademark Journal, and obtain a trademark certificate.
When conflicts arise, the party alleging infringement can seek legal redress in court to enforce their rights. However, there must be proper grounds.
Can Zap Africa seek legal redress?
Zap Africa can seek legal redress if it has trademarked its name, but a trademark in the wrong classes might complicate things for the crypto startup.
Interestingly, even if a company’s name is not trademarked, it can take action under common law through a legal concept called “passing off.”
This means that the company can seek an equitable remedy by demonstrating that another party is taking advantage of the goodwill it has built over the years with a particular name.
Essentially, Zap Africa may have the legal standing to keep the name Zap, but according to a legal expert who spoke with Techpoint Africa, the outcome depends more on factual evidence than on the law.
“Given that until this time, a lot of people did not know about Zap Africa, that could be a defence put forward by Paystack.” However, Zap Africa could also seek an injunction to prevent Paystack from using the name and even demand that any income generated while the name is used be paid to them.
This has happened before
In a similar case, a lesser known company called Citilink Accesscorp Limited filed a lawsuit against MTN Nigeria for infringing on its trademark, WEBPLUS, through MTN WEBPLUS.
Citilink Accesscorp Limited won the suit and MTN Nigeria was asked to pay ₦70 million in yearly damages from 2014 to 2025.
In this case, Citilink Accesscorp Limited trademarked the name WEBPLUS, but MTN Nigeria argued that Citilink’s trademark registration had lapsed between 2008 and 2014, while it applied in 2024.
Unfortunately for MTN, the judge didn’t budge. Beyond the ₦70 million yearly, damages — ₦840 million in total — MTN Nigeria was also barred from ever using the trademark WEBPLUS.
What does Zap Africa plan to do?
For now, Zap Africa is not considering taking any legal action. Asu-Johnson said the company is looking for a way to resolve the issue amicably and has reached out to Paystack. However, the fintech powerhouse has yet to acknowledge the situation.
Since the Zap saga started, he said some Zap Africa customers have been confused. “Some even thought we were rebranding or partnering with Paystack. This is honestly harmful to our brand.”
He stated that Zap Africa has built a strong identity in the crypto space, and Paystack’s Zap could lead to brand dilution.
“In the finance and crypto world, trust is everything. Some of our users may associate us with Paystack’s product, which operates in a completely different niche.
There is the risk of losing opportunities; potential partners and investors may hesitate to partner with us due to brand identity conflicts.”
The crypto space has been quite difficult in Nigeria over the past few years. Because of multiple shutdowns due to the crypto winter and regulatory challenges, crypto companies are treading carefully.
Legal experts believe one way Zap Africa can amicably resolve its identity problem with Paystack’s Zap is through negotiation.
“They could agree that Paystack should modify the name so that it is sufficiently distinguishable from Zap or purchase the trademark rights.”
In the meantime, neither Zap Africa nor Paystack have revealed their trademark licence for Zap. Techpoint Africa reached out to Paystack for comments but did not get a response. However, in an email survey sent to attendees of its launch, the company described the product as Zap by Paystack.
Join this space on how to protect your IP as a Nigerian startup.
