Touchtech provides financial services companies with advanced Strong Customer Authentication technology (SCA) and its clients include FinTech companies such as N26 and Transferwise.
"Today we’re thrilled to announce we’ve been acquired by Stripe, which will help us accelerate our work and support more customers. Strong Customer Authentication, a new EU regulation coming into effect on September 14, 2019, will radically change the way European customers buy online. As a result, the internet payment landscape is going to change a great deal, and both banks and businesses operating online are going to have to adapt," reads a statement by Touchtech announcing the acquisition.
The financial terms and figures of the deal have not been disclosed by either party.
Stripe and Africa's FinTech startups
Stripes' acquisition of Touchtech is not its first investment transaction as far as African FinTech startups, specifically Nigerian ones, are concerned. During the third quarter of 2018, Nigerian FinTech Startup, PayStack, raised $8 million in a Series A funding round which was led by Stripe with Visa also participating while Tencent and Y Combinatoralso participated by providing follow-on funding.
Touchtech has emphasized that their main focus is to make it straightforward for banks to provide the best authentication experience to their customers.
“Touchtech builds software that helps banks enable frictionless and secure payment experiences. We’re looking forward to supporting their work to improve the online payments ecosystem,” said Patrick Collision, Chief Executive at Stripe.
Touchtech was founded in 2014 by Shekinah Adewumi, Niall Hogan and Joseph Kuye. Kuye has since left Touchtech leaving Adewumi and Hogan as the remaining members of the original founding team.
"Stripe and Touchtech are both using innovative new technology to grow the overall size of the internet economy. Both organizations work hard to take a long-term view of what’s best for both businesses and for customers. We’re confident that we’ve found a natural match. As part of Stripe, we will continue to grow our products, based out of Stripe’s R&D hub in Dublin. We are really looking forward to the things we can build by working with Stripe, and can’t wait to show you what we’re up to," concludes the statement by Touchtech.
It's refreshing to hear of an African co-founded FinTech startup that looks beyond the trending buzzword of "financial inclusion" into other available opportunities within the FinTech sector.
Cover image credit: Niall Hogan and Shekinah Adewumi, co-founders of Touchtech Payments.