Paystack has taken a major step beyond its traditional payment services by acquiring Ladder Microfinance Bank, gaining a regulated banking licence in Nigeria.
The newly acquired institution will be rebranded as ‘Paystack Microfinance Bank (Paystack MFB)’ and operate as a separate regulated entity within the Paystack group.
The deal allows the fintech company to hold customer deposits and provide loans which are capabilities it previously lacked under its payments-only licence.
Amadine Lobelle, Paystack’s chief operating officer, stated that the bank will initially focus on lending to businesses before expanding to consumer credit and broader financial services.
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This acquisition marks a strategic pivot for Paystack, which has spent nearly ten years building payments infrastructure used by hundreds of thousands of businesses across Africa.
The move positions the company to compete more directly with other fintechs and microfinance institutions that combine payments, deposits, and lending.
Paystack’s expansion into regulated banking follows its entry into consumer financial services with Zap, its first consumer app launched in 2025.
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In addition to credit products, Paystack MFB plans to offer banking-as-a-service (BaaS) solutions for companies building financial tools and treasury systems.
By owning a banking licence, Paystack gains more control over the money flowing through its systems instead of relying on partner banks for holding funds.