In March 2025, fintech giant Paystack launched a consumer-facing app called Zap, designed to simplify bank transfers. Zap Africa, a crypto exchange founded in 2023, objected instantly. Its team argued they had trademarked “Zap” across Classes 35,36 and 42 in Nigeria since 2023. They posted on X: “There is only one ZAP in Nigeria and Africa”, and sent a cease-and-desist letter to Paystack.
Paystack responded with ts own legal notice, claiming due diligence and a December 2023 trademark filing in the relevant financial services classes even suggesting simultaneous use of the na,e was justifiable under honest concurrent use rules.
Trademark Clash Halts Zap Africa Seed Round
The escalating dispute rattled investors. Zap Africa had crossed 50,000 users and approached a critical seed funding round when the name controversy emerged. The fallout froze its fundraising discussions. “We had a seed round early in the first quarter, and we were not able to close because of the issues with Paystack”, co-founder Tobiloba Asu-Johnson said.
Users also grew uneasy, fearing the platform may be forced to shut or rebrand. That uncertainty rolled through the team and impacted morale.
Building Resilience and Revenue
Despite the legal distractions, Zap Africa stayed focused on building its platform. Its non-custodial exchange emphasised security and transparency amid a crypto environment haunted by FTX and Celsius collapses. The platform retained full user control of funds and grew user trust steadily.
By mid-2025, Zap Africa began generating around $100,000 monthly revenue from trading fees, subscription services and gateway charges. That benchmark proved its business model worked even as legal clouds loomed.
Trademark Victory and Future Traction
In early April, Zap Africa finally secured its Class 36 trademark approval, sealing its legal claim over “Zap” in financial services. The team views that as a turning point and hopes to restore investor confidence and clarity for users.
Key Lessons from Zap Africa’s Journey
1. IP Protection Matters
Founders shouldn’t wait to register their names. Filing across relevant trademark classes prevents conflicts and protects ongoing fundraising.
2. Fundraising Lives on Credibility
The pause in Zap Africa’s seed round shows how quickly legal uncertainty can spook backers. Investors value clarity as much as traction.
3. Customer trust trumps controversy
Zap Africa achieved $100K monthly revenue by focusing on user retention, security, and real utility avoiding reliance on speculative hype.
Final Thoughts
Zap Africa’s odyssey from a bitter naming war with Paystack to generating $100,000 monthly revenue offers a blueprint for fintech startups in Africa. Protect your IP early, stay lean under pressure, and let customers prove your value. In a young and legal‑uncertain market, Zap Africa shows resilience and discipline can still win
