Paystack has acquired Ladder Microfinance Bank in Nigeria, a move that allows the fintech company to operate with a regulated banking licence.
The acquired institution will be rebranded as Paystack Microfinance Bank (Paystack MFB) and function as a separately regulated entity within the Paystack group.
With the banking licence, Paystack is now allowed to accept customer deposits and issue loans, capabilities that were not available under its previous payments-only authorisation. Until now, the company relied on partner banks to hold funds moving through its platform.
The acquisition represents a shift in how Paystack approaches its role in Nigeria’s financial services sector. The company has spent close to a decade developing payment infrastructure used by a large number of businesses across Africa, but had limited direct involvement in deposit-taking or credit provision.
Lending to businesses will be a priority
According to representatives from Paystack, the newly formed microfinance bank will initially prioritise lending to businesses. Over time, the scope is expected to expand to include consumer credit and additional financial services. Company officials indicated that the phased approach reflects a focus on enterprise needs before moving into wider retail offerings.
Beyond lending, Paystack MFB is also expected to provide banking-as-a-service capabilities. These services would allow other companies to build financial products, including internal treasury and money management tools, on top of Paystack’s regulated banking infrastructure.
The move places Paystack in closer competition with other fintech firms and microfinance institutions that offer payments, deposits and lending within a single corporate structure. By holding its own banking licence, Paystack gains greater control over how funds are managed across its systems, reducing dependence on third-party banks for core financial operations.
The acquisition follows Paystack’s earlier expansion into consumer-facing financial services with the launch of Zap in 2025, signalling a general effort to diversify its product range beyond merchant payments.
