Paystack Microfinance Bank Begins Operations in Nigeria, Makes Promises
- Paystack has marked its 10th anniversary with the launch of Paystack Microfinance Bank (MFB)
- The move expanded the fintech beyond payments into broader banking and financial services
- The fintech, which started in Nigeria, now operates across five African countries and processes trillions of naira monthly
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Paystack, a Nigerian fintech company, has marked its 10th anniversary with the launch of a new subsidiary, Paystack Microfinance Bank (MFB) after acquiring Ladder Microfinance Bank.
Founded in Nigeria a decade ago with the goal of simplifying how businesses get paid, Paystack has grown from a single payments product into a platform operating across five African countries.
Source: Getty Images
Paystack launches Microfinance Bank in Nigeria
In a statement published on Wednesday, January 14, it was revealed Paystack Microfinance Bank would operate independently of Paystack Payments Limited.
It noted that the microfinance bank has its own licence, governance structure, and product roadmap, although it will collaborate closely with Paystack’s core payments business.
"Paystack started in Nigeria ten years ago with a simple idea: to make it easier for businesses to get paid. We believed modern technology could make payments less complex and frustrating, so we set out to build infrastructure to support that goal. While there’s still a lot to do, we make progress every day.
"A decade later, Paystack has grown from a payments product in Nigeria into a platform that operates across five African countries."
BusinessDay reports that the company said its systems now process trillions of naira every month, serving more than 300,000 businesses and millions of customers.
Over the years, Paystack said it has learned that payments, while critical, are only one part of a broader financial journey. Businesses also need tools to store money securely, move funds efficiently, gain insights into their finances, and grow with confidence.
Individuals, meanwhile, require financial products that help them manage, protect, and grow their money, while developers need reliable and compliant infrastructure to build solutions at scale.
It added:
"Paystack Microfinance Bank operates independently of our sister company, Paystack Payments Limited, with its own license, roadmap, and governance. We work closely, but each company is focused on its respective mission.
"We’re bringing the same principles that shaped Paystack from day one: reliability, thoughtful simplicity, transparency, and trust. We’ve kicked off with a small group of members and will gradually open up to more businesses and individuals who are excited to help co-author this next chapter with us."
Source: Getty Images
New Paystack Microfinance Bank
Paystack said the new bank will be guided by the same principles that shaped its original product, including reliability, simplicity, transparency, and trust.
The microfinance bank has begun operations with a small group of users and will gradually expand access to more businesses and individuals.
The company said.
“Ten years ago, we set out to fix payments. Today, we’re extending that work to build banking that helps people and businesses do more."
It further described the launch of Paystack MFB as the next chapter in its effort to build financial infrastructure across Africa.
Ezra Olubi speaks out as Paystack sacks him
Earlier, Legit.ng reported that Nigerian fintech giant Paystack terminated the employment of its co-founder and Chief Technology Officer, Ezra Olubi.
Olubi, who helped drive Paystack’s technical development since its founding in 2015, confirmed the termination in a public statement on Saturday, November 22.
The decision came days after Paystack’s Board of Directors suspended him and launched an internal investigation into allegations circulating online
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
