In a major strategic pivot, Nigerian fintech giant Paystack has officially entered the banking sector with the acquisition of Ladder Microfinance Bank. This move grants Paystack a regulated banking licence from the Central Bank of Nigeria (CBN), allowing it to move beyond its core payments processing business and directly offer services like accepting customer deposits and issuing loans.
From Payments Processor to Full-Service Bank
The newly acquired entity will be rebranded as Paystack Microfinance Bank (Paystack MFB) and will operate as a separate, fully regulated arm within the Paystack group. According to Amadine Lobelle, Paystack’s Chief Operating Officer, the initial focus will be on lending to businesses, with plans to later expand into consumer credit and a broader suite of financial services.
This acquisition marks one of the most significant shifts for Paystack since its launch nearly a decade ago. Previously, the company, used by hundreds of thousands of businesses across Africa, was limited to processing transactions while partner banks held customer funds and managed credit. Owning a regulated bank now gives Paystack greater control over its financial ecosystem, reduces reliance on third-party institutions, and opens up new revenue streams from lending and deposit-taking activities.
Regulatory Scrutiny and the Path to Banking
Industry analysts suggest that increased regulatory pressure accelerated Paystack's decision to secure a banking licence. In 2025, the CBN fined Paystack N250 million over its consumer-facing app, Zap. The regulator stated that Paystack was not licensed to hold customer funds, operating only as a switching and processing firm.
The launch of Zap in 2025 had already signaled Paystack's ambitions to serve consumers directly. The acquisition of Ladder MFB now provides the necessary regulatory foundation to support those goals legally. This step allows Paystack to operate within a clear regulatory framework, moving away from potential workarounds like digital wallets.
Intensifying Competition in Nigeria's Fintech Landscape
Paystack's move places it in more direct competition with other fintechs and microfinance banks that already combine payments, deposits, and credit. Furthermore, Paystack MFB plans to offer banking-as-a-service (BaaS) solutions, enabling other companies to build financial products on its infrastructure.
This transition reflects a broader industry trend where leading payment companies are evolving into comprehensive financial platforms. Notably, in early January 2026, another major Nigerian payments firm, Flutterwave, announced its acquisition of fintech infrastructure provider Mono, highlighting a similar consolidation strategy.
This strategic expansion occurs against the backdrop of the CBN's ongoing recapitalisation exercise for banks. Legit.ng recently reported that as of January 2026, 19 banks have met the new minimum capital requirements ahead of the March 31, 2026 deadline, with compliance expected to accelerate in the coming weeks.
