Paystack Steps Into Banking With Microfinance Acquisition, Eyes Lending Growth

Paystack is making a decisive shift that signals its ambitions now extend well beyond online payments. The Stripe-backed fintech has acquired Ladder Microfinance Bank, marking its official entry into regulated banking and credit services in Nigeria.

With the acquisition, Paystack gains a microfinance banking licence, unlocking the ability to accept deposits and issue loans – capabilities that were previously out of reach under its payments-only approval. The lender will be rebranded as Paystack Microfinance Bank (Paystack MFB) and will operate as a standalone but fully regulated subsidiary within the Paystack group.

The move positions Paystack to evolve from a transaction processor into a full-stack financial services player. The company says Paystack MFB will first concentrate on lending to businesses, leveraging years of transaction data from merchants already using its platform. Over time, the offering is expected to expand into consumer credit and additional banking services.

Beyond direct lending, Paystack plans to open up its new banking infrastructure to other startups through banking-as-a-service tools, enabling developers to build products such as treasury systems and embedded finance solutions.

For years, Paystack relied on partner banks to safeguard customer funds. Owning a licensed bank now gives it greater control over cash flows, deeper insight into customer behaviour, and flexibility to design tailored financial products. In a market where small businesses face a massive financing gap, the strategy could prove transformative.

The acquisition also places Paystack in direct competition with Nigeria’s fast-growing digital banks and lending fintechs, underscoring a wider industry shift toward fintechs owning, rather than merely integrating with, core financial infrastructure.