A decade after redefining digital payments in Nigeria, Paystack Inc., the Stripe-owned fintech giant, has moved into formal banking with its acquisition of Ladder Microfinance Bank.
The deal expands Paystack’s capabilities beyond digitising payments and positions the company as a regulated provider of full financial services to small businesses, consumers and developers.
The newly acquired entity will operate as Paystack Microfinance Bank (Paystack MFB) and adds a banking engine to Paystack’s existing payment infrastructure across Africa. The bank will offer loans, deposits, treasury tools and banking-as-a-service (BaaS) products for fintechs and large companies, marking a significant leap for the company.
Paystack confirmed that the move comes after recognising limits in the payments-only model. “Payments are a critical part of the financial journey, but not the whole story. Businesses don’t just need to get paid. They need a financial operating system — one that helps them store money safely, move it easily, understand it clearly and grow with confidence,” the company said in a statement.
The company began as a simple checkout solution for Nigerian businesses, but now processes trillions of naira every month, supporting over 300,000 businesses and millions of buyers. With the MFB licence, Paystack gains the regulatory permission to capture more of that value by holding and deploying funds, rather than relying entirely on partner banks.
“Ten years ago, we set out to fix payments,” Paystack said. “Today, we’re extending that work to build banking that helps you do more and dare more.”
Paystack MFB will operate independently from Paystack Payments Limited under Stripe ownership and will have its own management, licence and governance.
“Paystack Microfinance Bank operates independently of our sister company Paystack Payments Limited. We work closely, but each company is focused on its mission,” the company added.
This structure allows Paystack to test deposit and lending products without the cost, capital demands and compliance exposure of a commercial banking licence.
The launch of Paystack MFB follows a series of strategic moves by the firm into consumer and business finance. In 2024, it rolled out Zap, a digital wallet and payment app that accelerated Paystack’s shift into personal finance before the banking licence expanded that ambition. Zap now sits within Paystack MFB’s umbrella after securing regulatory approval earlier this year.
The microfinance licence positions Paystack to compete directly with a long list of challengers across the lending and digital banking space — including LAPO, Accion, Carbon, FairMoney, Moniepoint, OPay, PalmPay and Kuda — all of which now combine payments, deposits and lending services.
Yet the company views its route as different. Rather than starting with retail consumers and expanding into credit, Paystack is building banking from the infrastructure layer up, starting with merchants and developers, then moving to individuals.
According to the company, “Developers want infrastructure that allows them to build elegant solutions on reliable platforms, quickly, securely and compliantly.”
The company plans to provide BaaS APIs that enable other startups to offer digital accounts, cards, savings or lending products without needing to secure their own licence — mirroring how Paystack simplified online payments in 2016.
Paystack emphasised that the new bank remains rooted in the principles that shaped its first decade: “reliability, thoughtful simplicity, transparency and trust.”
“Thank you to the many merchants and customers who inspire us to imagine bigger. We’re excited to build something incredible with you. This next chapter belongs to every African entrepreneur who dreams bigger when the tools finally fit their ambition,” the company said.
