Paystack has acquired Ladder Microfinance Bank in a bid to move beyond traditional payments, marking its formal entry into regulated banking and lending in Nigeria
The deal gives Paystack a microfinance banking licence, allowing the company to hold deposits and issue loans, capabilities it could not offer under its previous switching and payments-only licence.
Per TechCabal, the newly acquired entity will be rebranded Paystack Microfinance Bank (Paystack MFB) and operate as a separate regulated unit under the Paystack corporate family.
Paystack’s Chief Operating Officer, Amadine Lobelle, told TechCabal that Paystack MFB will start by offering lending products to businesses before eventually expanding into consumer loans and broader financial services.
The bank will also roll out banking-as-a-service (BaaS) products for companies building financial tools and treasury solutions.
The acquisition is a strategic pivot for Paystack, which has spent nearly a decade building payment infrastructure used by hundreds of thousands of businesses but relied on partner banks to hold customer funds.
With a microfinance licence, Paystack can now exercise greater control over money flows and offer more tailored banking services directly to businesses that currently use its payment gateway.
This is not the first time Paystack has attempted to expand beyond being a payment gateway. It launched its first consumer app, Zap in March 2025.
Paystack’s move to own an MFB instead of partnering with one is similar to Flutterwave’s recent acquisition of Mono, a major service provider for the payment company and its competitors.
However, in Paystack’s case, the acquisition of Ladder Microfinance Bank Industry put it in direct competition with both traditional microfinance banks and digital lenders such as Carbon, Fairmoney, Moniepoint, OPay, PalmPay and Kuda, which also blend payments, deposits and lending services in Nigeria’s vibrant fintech market.
Despite the number of players in Nigeria’s lending market, there’s still a substantial credit gap for small businesses. Recent estimates place the unmet financing demand at ₦13 trillion. With over a decade worth of experience helping businesses receive payment online, the company is equipped to also meet their credit needs.
