Why Paystack Started Banking Services With Ladder MFB Acquisition as it Expands Beyond Payments
- Paystack acquires Ladder Microfinance Bank, gaining a regulated banking licence in Nigeria
- Newly rebranded Paystack MFB will focus on business lending and expand into consumer credit
- The move positions Paystack as a full-service financial platform amid rising competition in Nigeria’s fintech landscape
Paystack has taken a decisive step beyond payments by acquiring Ladder Microfinance Bank, a move that gives the fintech firm a regulated banking licence in Nigeria.
The acquisition allows Paystack to operate banking services directly, marking one of its biggest strategic shifts since launching nearly a decade ago.
Source: UGC
The microfinance bank will be rebranded as Paystack Microfinance Bank (Paystack MFB) and will operate as a separate, fully regulated entity within the Paystack group.
With the licence, Paystack can now legally accept customer deposits and issue loans, functions that were previously outside the scope of its payments-only authorisation.
From payments to credit and deposits
Amadine Lobelle, Paystack’s chief operating officer, said the bank will initially focus on lending to businesses. Over time, the company plans to expand into consumer credit and a wider range of financial services.
For years, Paystack has built payment infrastructure used by hundreds of thousands of businesses across Nigeria and other African markets.
However, its role was limited to processing transactions, while partner banks held customer funds and provided credit. The new banking licence changes that balance.
By owning a regulated bank, Paystack gains more control over how money moves through its ecosystem, reducing reliance on third-party financial institutions and unlocking new revenue streams tied to lending and deposits.
Lessons from regulation and the ZAP fine
The move into regulated banking also follows increased scrutiny from regulators.
In 2025, the Central Bank of Nigeria fined Paystack N250 million over its consumer app, Zap, stating that the company was not licensed to hold customer funds but only to operate as a switching and processing firm.
Industry observers say the fine, combined with the sheer volume of transactions flowing through Paystack’s systems, likely accelerated its decision to pursue a banking licence rather than rely on workarounds such as digital wallets.
Paystack launched Zap in 2025 as its first consumer-facing financial product, signalling early ambitions beyond merchant payments. The acquisition of a microfinance bank now provides the regulatory backbone to support those ambitions.
Banking-as-a-service and new competition
Beyond lending, Paystack MFB plans to offer banking-as-a-service solutions.
This will allow other companies to build financial products, treasury tools, and embedded finance services on top of Paystack’s infrastructure.
The move places Paystack in more direct competition with fintechs and microfinance institutions that already combine payments, deposits, and credit under one roof.
It also reflects a broader trend of payment companies pushing deeper into the banking ecosystem to capture more value from their users.
A wider industry shift
Paystack is not alone in this transition. In early January, another major Nigerian payment firm, Flutterwave, announced the acquisition of Mono, a fintech infrastructure provider, as part of its own push to consolidate financial services.
Source: Getty Images
Together, these moves highlight a growing shift in Nigeria’s fintech space, where leading payment companies are evolving into full-service financial platforms.
For Paystack, the acquisition of Ladder Microfinance Bank represents a clear statement of intent: the company is no longer just processing payments; it is building a bank.
19 banks cross CBN’s recapitalisation hurdle
Legit.ng earlier reported that with fewer than 90 days to CBN's March 31, 2026 recapitalisation deadline, 19 banks have now met the new minimum capital requirements needed to retain their operating licences.
The latest additions are First Bank Nigeria, Fidelity Bank Plc and FSDH Merchant Bank, lifting the number of compliant institutions from 16 recorded last year.
Analysts say the pace of compliance is expected to accelerate, with more lenders likely to conclude their capital raising plans between next week and the end of January.
Source: Legit.ng
