In a significant move to broaden its financial services footprint, the Nigerian fintech company Paystack has officially launched a microfinance bank. This strategic expansion coincides with the company's celebration of a decade of operations in Africa.
A Decade of Growth Leads to New Banking Venture
Paystack, which began its journey in Nigeria ten years ago with the mission of simplifying business payments, has evolved dramatically. From a single payments product, the platform now operates across five African countries and processes transactions worth trillions of naira every month within Nigeria alone. The company serves over 300,000 businesses and millions of customers.
The launch of Paystack Microfinance Bank (MFB) was announced on Wednesday, January 14, 2026. This new entity was established following Paystack's acquisition of Ladder Microfinance Bank. According to the company's statement, the microfinance bank will operate independently from Paystack Payments Limited, possessing its own licence, governance structure, and product roadmap.
Expanding Beyond Payments into Broader Finance
Paystack explained that its decade of experience revealed that payments are just one component of a wider financial ecosystem. The company identified that businesses require comprehensive tools for securely storing funds, moving money efficiently, gaining financial insights, and achieving growth. Similarly, individuals need accessible products to manage, protect, and grow their personal finances.
"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," the company stated. Paystack MFB aims to bring the same principles of reliability, simplicity, transparency, and trust that defined its original payments platform to the new banking services.
Gradual Rollout and Future Vision
The microfinance bank has commenced operations with a select, small group of users. The plan is to gradually expand access to a broader range of businesses and individuals across Nigeria. Paystack described this launch as the next chapter in its enduring mission to build robust financial infrastructure for the African continent.
This development follows a period of internal change for the fintech leader. In November 2025, Paystack terminated the employment of its co-founder and Chief Technology Officer, Ezra Olubi, following an internal investigation. Despite this, the company continues to push forward with its strategic expansion plans, solidifying its position as a major player in Africa's evolving financial technology landscape.
