By Deborah Nnamdi
Nigerian fintech giant Paystack, owned by global payments company Stripe, has officially entered Nigeria’s banking sector with the launch of Paystack Microfinance Bank, following its acquisition of Ladder Microfinance Bank. The move marks a significant expansion beyond payments into full-stack financial services.
The new microfinance bank, announced on Wednesday, will operate independently of Paystack Payments Limited, with its own licence, governance structure, and product roadmap, while maintaining close collaboration with the core payments business.
Paystack said the decision to move into banking is informed by insights gained from supporting over 300,000 businesses and millions of consumers across Nigeria, processing trillions of naira in transactions every month. “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,” the company stated.
The fintech explained that businesses require tools to securely store money, move funds efficiently, gain insights through financial data, and grow with confidence. Individuals, meanwhile, seek financial products that help them protect, grow, and use their money as their ambitions evolve. Paystack Microfinance Bank will focus on providing these banking services, while Paystack Payments Limited continues to manage payment infrastructure.
A small group of early users has already been onboarded, with plans to gradually expand access to more businesses and individuals. The acquisition of Ladder Microfinance Bank provides Paystack with a regulated foundation to deliver banking services, reflecting a wider trend among African fintechs to offer end-to-end financial solutions rather than single-point services.
Paystack emphasized that developers remain central to its strategy, highlighting the need for secure, reliable, and compliant infrastructure to support innovation. The move into banking could intensify competition in Nigeria’s microfinance and SME-focused segments and underscores the increasing convergence between fintechs and licensed financial institutions.
Founded in 2015 by Ezra Olubi and Shola Akinlade, Paystack was acquired by Stripe in 2020 for $200 million. The company recently faced controversy when co-founder and former COO Ezra Olubi was suspended and subsequently terminated over sexual misconduct allegations.
