Paystack has acquired Ladder Microfinance Bank, marking a significant expansion beyond its traditional payment processing services into regulated banking and lending in Nigeria.
The acquisition provides Paystack with a microfinance banking license, allowing the company to accept deposits and extend loans—capabilities previously unavailable under its payments-only license. The acquired institution will operate as Paystack Microfinance Bank (Paystack MFB), functioning as a separate regulated entity within the Paystack corporate structure.
According to Paystack’s Chief Operating Officer Amadine Lobelle, Paystack MFB will initially focus on business lending before expanding into consumer loans and additional financial services. The bank also plans to introduce banking-as-a-service products for companies developing financial tools and treasury solutions.
This strategic shift allows Paystack to directly control money flows and provide customized banking services to the hundreds of thousands of businesses currently using its payment gateway, rather than relying on partner banks to hold customer funds.
The move follows Paystack’s launch of Zap, its first consumer application, in March 2025, demonstrating the company’s continued evolution beyond payment processing.
By entering the lending space, Paystack now competes directly with established digital lenders including Carbon, Fairmoney, Moniepoint, OPay, PalmPay, and Kuda in Nigeria’s competitive fintech landscape. The market opportunity remains substantial, with unmet small business financing demand estimated at ₦13 trillion.
Paystack’s decade-long experience facilitating online payments for businesses positions the company to address their credit requirements through this new banking venture.
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