A legal dispute is heating up in Nigeria's fintech and crypto space as Zap Africa, a decentralized cryptocurrency platform, has taken action against Paystack over the use of the name "Zap" in Paystack’s new product "Zap by Paystack."

What's the Conflict About?

Zap Africa claims to have held the trademark rights to "Zap" for over three years under Class 35 (business and advertising), and they argue that Paystack’s launch of a payment product with the same name is an infringement on their brand identity.

Paystack, on the other hand, insists it conducted due diligence before launching "Zap by Paystack" and has filed a trademark under Class 36 (financial services). This subtle difference in class categorization could play a significant role in the legal outcome.

Why It Matters

Trademark classes matter: The case highlights the importance of registering trademarks under the correct categories.

Brand confusion: Zap Africa believes the similarity in names could mislead customers.

Fintech precedent: This could set a landmark example for other Nigerian startups about brand protection and legal risks.

What’s Next?

Both companies are now pursuing legal avenues to protect their interests. The result of this case may have long-term implications for branding, IP law, and fintech regulation in Nigeria and beyond.

Stay tuned as Overite follows this legal battle closely.