Paystack has acquired Ladder Microfinance Bank in a strategic move to expand beyond payments and formally enter regulated banking and lending in Nigeria.
The acquisition gives Paystack a microfinance banking licence, allowing the fintech company to accept deposits and issue loans Services it could not previously provide under its switching and payments-only licence. The newly acquired institution will be rebranded as Paystack Microfinance Bank (Paystack MFB) and will operate as a separate, fully regulated entity within the Paystack group.
Speaking to Fintech Insights, Paystack’s Chief Operating Officer, Amadine Lobelle, said Paystack MFB will initially focus on lending products for businesses, with plans to later expand into consumer loans and a broader range of financial services. The bank also intends to introduce banking-as-a-service (BaaS) offerings for companies building financial tools, embedded finance products, and treasury solutions.
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The deal represents a significant strategic shift for Paystack, which has spent nearly a decade building payment infrastructure used by hundreds of thousands of businesses across Nigeria. Until now, the company relied on partner banks to hold customer funds and provide regulated banking services.
With a microfinance banking licence, Paystack gains greater control over fund flows and the ability to design more customised banking and credit products for the businesses already using its payment gateway.
This is not Paystack’s first attempt to expand beyond payments. In March 2025, the company launched its consumer-facing app, Zap, signalling broader ambitions in financial services.
Paystack’s decision to acquire and operate a microfinance bank rather than partner with one mirrors recent industry moves, including Flutterwave’s acquisition of Mono, a key infrastructure provider to fintechs in Nigeria.
However, the move places Paystack in direct competition with traditional microfinance banks and established digital lenders such as Carbon, FairMoney, Moniepoint, OPay, PalmPay, and Kuda, all of which combine payments, deposits, and lending in Nigeria’s fast-growing fintech ecosystem.
Despite the crowded market, a significant financing gap remains, particularly for small businesses. Industry estimates put Nigeria’s unmet SME credit demand at about ₦13 trillion. With more than a decade of experience supporting businesses through online payments, Paystack is positioning itself to play a larger role in closing that gap by extending credit alongside its core payments services.
