Nigerian fintech giant Paystack, co-founded by software engineer Shola Akinlade, is taking a major step into banking by acquiring Ladder Microfinance Bank. The move broadens Paystack’s services from digital payments to deposit-taking and small business lending. The acquired institution has been rebranded as Paystack Microfinance Bank (Paystack MFB).
Paystack MFB will operate as an independently governed entity alongside Paystack Payments Limited. This structure allows the company to build banking products while keeping its core payments platform separate from regulated deposit-taking activities. The bank’s primary focus will be addressing Nigeria’s $32 billion financing gap for small and medium-sized enterprises (SMEs), which often struggle to access credit from traditional lenders.
Amandine Lobelle, Paystack’s COO, explained, “After 10 years of building payment infrastructure, it became clear businesses needed more than a way to get paid. Bringing a bank license in-house lets us pair technology-driven products with regulated banking safeguards.”
Using transaction data from its payments platform, Paystack MFB plans to offer fast-working capital loans, merchant cash advances, and overdrafts. The bank also intends to launch APIs for startups and developers to integrate digital accounts and savings into their products without needing separate banking licenses. Initially targeting businesses, Paystack plans to eventually expand into consumer lending, integrating its digital wallet app, Zap, into the microfinance bank’s offerings.
Founded in 2016 by Akinlade and Ezra Olubi, Paystack operates in Nigeria, Ghana, and South Africa. The company processes over half of Nigeria’s online payments and serves more than 60,000 businesses, including MTN, FedEx, UPS, and Piggyvest. This expansion positions Paystack to compete more effectively with digital-first fintech firms like Moniepoint, OPay, and Kuda, while also enhancing its capacity to help African businesses manage cash flow and access credit.
