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Paystack, the Nigerian payments company co-founded by Nigerian software engineer Shola Akinlade, is stepping into banking after acquiring Ladder Microfinance Bank. The move expands its services beyond payments into deposit-taking and small business lending.
The acquisition, announced Wednesday, Jan. 14, 2026, marks a shift for Paystack from a payments platform to a broader financial services group. The acquired bank has been rebranded as Paystack Microfinance Bank (Paystack MFB).
New bank targets Nigeria’s $32 billion gap
Paystack MFB will operate as an independently governed sister company to Paystack Payments Limited. The structure allows the group to build banking products while keeping its core payments infrastructure separate from regulated deposit-taking activities.
Amandine Lobelle, Paystack’s chief operating officer, said the bank’s first priority is narrowing Nigeria’s estimated $32 billion financing gap for small and medium-sized businesses, which often struggle to access credit from traditional lenders.
“After 10 years of building payment infrastructure, it became clear that businesses needed more than a way to get paid,” Lobelle said. “Bringing a bank license in-house lets us pair technology-led products with the safeguards of regulated banking.”
Lending built on payments data
By using transaction data from its payments gateway, Paystack MFB plans to offer working capital loans, merchant cash advances and overdrafts, with approval times shorter than those typically offered by commercial banks.
The bank plans to launch application programming interfaces (APIs) enabling startups and developers to integrate digital accounts and savings into their products without separate banking licenses. Initially targeting businesses, Paystack plans to expand into consumer lending. Its digital wallet app, Zap, introduced in early 2025, will be incorporated into the microfinance bank’s services.
Paystack strengthens digital payments presence
Founded in 2016 by Akinlade and Ezra Olubi, Paystack operates in Nigeria, Ghana and South Africa. The company processes more than half of Nigeria’s online payments and serves over 60,000 businesses, including MTN, FedEx, UPS and Piggyvest. It was one of Y Combinator’s first African-backed startups and later joined Stripe.
Paystack’s expansion positions it as a stronger competitor to digital-first financial firms like Moniepoint, OPay and Kuda, as well as established microfinance operators such as LAPO. The move enhances Paystack’s ability to help African businesses manage cash and access credit.
