African fintech giant Paystack, a subsidiary of Stripe, has issued a cease and desist notice to cryptocurrency startup Zap Africa amid a brewing trademark dispute over the name “Zap.”

The notice, sent on Monday, follows online discussions where Zap Africa accused Paystack of failing to verify the trademark status before launching its new consumer product, Zap by Paystack.

Zap Africa has publicly challenged Paystack, alleging negligence in the naming process. However, a source within Paystack told Condia that the company had conducted thorough due diligence before proceeding with the name.

“We’re confident that we filed for the trademark in the appropriate category,” the source stated. “We registered the ‘Zap’ trademark under multiple classifications, including financial services, a category where Zap Africa has no registration.”

Paystack filed for the Zap trademark and logo on December 4, 2023, under six different categories, including financial, monetary, and insurance services. Meanwhile, a search of Nigeria’s Corporate Affairs Commission database revealed multiple businesses using the term “Zap” in their names, Condia reported.

Zap Africa has also raised concerns that Paystack’s new product could confuse its customers. However, Paystack argues that the word “Zap” is too common to be exclusively associated with a single entity.

“Zap is a widely used term in everyday language,” the source added. “Records from Nigeria’s Trademarks, Patents, and Designs Registry show that ‘Zap’ has been in use for over a decade, with a separate entity filing a trademark containing the word as early as 2008.”

The dispute underscores ongoing tensions between fintech and crypto startups in Africa’s evolving digital payments space. Neither Paystack nor Zap Africa has indicated whether legal action will follow the cease and desist notice.