Paystack steps into regulated banking with Ladder Microfinance Bank acquisition

Paystack has taken a decisive step beyond payments with the acquisition of Ladder Microfinance Bank, signalling its entry into regulated banking in Nigeria and a broader shift in its long-term strategy.

The deal grants Paystack a microfinance banking licence, allowing it to directly accept deposits, extend credit, and offer regulated financial services, functions it previously handled through partner banks. The institution will operate as Paystack Microfinance Bank (Paystack MFB), running as a standalone regulated entity within the Paystack group.

The company plans to begin with lending products tailored to businesses, an area where access to financing remains limited despite widespread participation in the digital economy. By drawing on transaction data from merchants already using its platform, Paystack is positioned to design credit products that better reflect real business activity. Consumer lending and additional financial services are expected to follow in later phases.

Beyond lending, Paystack MFB will also serve as an infrastructure provider through banking-as-a-service offerings. These products will enable companies to build financial tools, treasury systems, and embedded banking features without securing their own licences, expanding Paystack’s role in Nigeria’s fintech ecosystem.

The acquisition places Paystack in direct competition with digital lenders, neo-banks, and traditional microfinance institutions that already combine payments, deposits, and loans. However, Paystack enters this space with nearly a decade of experience supporting businesses across Africa, giving it a data-driven advantage as it moves deeper into regulated finance.

Following earlier moves into consumer services with its Zap app, the Ladder Microfinance Bank acquisition underscores Paystack’s evolution from a payments processor into a full-stack financial services company, one aiming to support Nigerian businesses not just at the point of payment, but across growth, liquidity, and long-term financial resilience.