Paystack, the Nigerian funds firm co-founded by Nigerian software program engineer Shola Akinlade, is getting into banking after buying Ladder Microfinance Financial institution. The transfer expands its providers past funds into deposit-taking and small enterprise lending.
The acquisition, introduced Wednesday, Jan. 14, 2026, marks a shift for Paystack from a funds platform to a broader monetary providers group. The acquired financial institution has been rebranded as Paystack Microfinance Financial institution (Paystack MFB).
New financial institution targets Nigeria’s $32 billion hole
Paystack MFB will function as an independently ruled sister firm to Paystack Funds Restricted. The construction permits the group to construct banking merchandise whereas conserving its core funds infrastructure separate from regulated deposit-taking actions.
Amandine Lobelle, Paystack’s chief working officer, mentioned the financial institution’s first precedence is narrowing Nigeria’s estimated $32 billion financing hole for small and medium-sized companies, which regularly battle to entry credit score from conventional lenders.
“After 10 years of constructing cost infrastructure, it turned clear that companies wanted greater than a strategy to receives a commission,” Lobelle mentioned. “Bringing a financial institution license in-house lets us pair technology-led merchandise with the safeguards of regulated banking.”
Lending constructed on funds knowledge
Through the use of transaction knowledge from its funds gateway, Paystack MFB plans to supply working capital loans, service provider money advances and overdrafts, with approval instances shorter than these sometimes provided by industrial banks.
The financial institution plans to launch utility programming interfaces (APIs) enabling startups and builders to combine digital accounts and financial savings into their merchandise with out separate banking licenses. Initially focusing on companies, Paystack plans to broaden into shopper lending. Its digital pockets app, Zap, launched in early 2025, can be integrated into the microfinance financial institution’s providers.
Paystack strengthens digital funds presence
Based in 2016 by Akinlade and Ezra Olubi, Paystack operates in Nigeria, Ghana and South Africa. The corporate processes greater than half of Nigeria’s on-line funds and serves over 60,000 companies, together with MTN, FedEx, UPS and Piggyvest. It was one in every of Y Combinator’s first African-backed startups and later joined Stripe.
Paystack’s enlargement positions it as a stronger competitor to digital-first monetary companies like Moniepoint, OPay and Kuda, in addition to established microfinance operators resembling LAPO. The transfer enhances Paystack’s capability to assist African companies handle money and entry credit score.
