Stripe-owned Nigerian fintech, Paystack, has officially entered Nigeria’s banking space following its acquisition of Ladder Microfinance Bank, marking a major expansion beyond payments into full-stack financial services.
The company announced the launch of Paystack Microfinance Bank on Wednesday, ten years after starting operations in Nigeria.
The fintech company said the new microfinance bank will operate independently of Paystack Payments Limited, with its own licence, governance structure, and product roadmap, while working closely with the core payments business.
This comes barely a week after another leading Nigerian fintech, Flutterwave, acquired open banking startup Mono to strengthen its payments stack with open banking, data, and identity capabilities.
According to Paystack, the decision to move into banking is driven by insights gained from supporting over 300,000 businesses and millions of consumers across Nigeria.
The company disclosed that its systems currently process trillions of naira every month, highlighting the central role it already plays in Nigeria’s financial ecosystem.
“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,” Paystack said in the statement.
According to the company, Paystack Microfinance Bank will be built around the same principles that shaped Paystack’s payments.
The company said it has already onboarded a small group of early users and plans to gradually open the platform to more businesses and individuals over time.
The acquisition of Ladder Microfinance Bank provides Paystack with a regulated foundation to offer banking services, as Nigeria’s fintech landscape continues to blur the lines between payments, banking, and broader financial services.
Paystack also emphasized that developers remain a key part of its strategy, noting that modern financial services require reliable, secure, and compliant infrastructure that allows builders to create new products quickly.
Paystack’s move into banking reflects a broader trend among African fintechs seeking to deepen customer relationships by offering end-to-end financial services rather than single-point solutions.
Paystack, founded in 2015 by Ezra Olubi and Shola Akinlade, was acquired by global fintech giant Stripe in 2020 in a $200 million deal.
Before the latest development, Paystack was in the news late last year for the wrong reasons as one of its co-founders and Chief Operating Officer, Ezra Olubi, was enmeshed in sexual misconduct allegations.
Paystack later terminated Olubi’s employment after days of suspension and investigations on the allegations.