KEY POINTS

• Paystack acquires and rebrands Ladder Microfinance Bank.
  
• New unit will focus on SME lending and digital banking products.
  
• Expansion deepens competition in Nigeria’s fintech and microfinance space.

Paystack, the Nigerian payments company co-founded by software engineer Shola Akinlade, is expanding into banking after acquiring Ladder Microfinance Bank, a move that broadens its services beyond payments into deposit-taking and business lending.

The acquisition, announced Wednesday, January 14, 2026, marks a strategic shift for Paystack from a pure payments platform to a broader financial services group. Paystack Microfinance Bank (Paystack MFB) has rebranded as a lender .

New bank targets Nigeria’s SME financing gap

Paystack MFB will operate as an independently governed sister company to Paystack Payments Limited. The structure further allows the group to develop regulated banking products while keeping its core payments infrastructure separate from deposit-taking activities.

Amandine Lobelle, Paystack’s chief operating officer, said the bank’s immediate focus is addressing Nigeria’s estimated $32 billion financing gap for small and medium-sized enterprises, many of which struggle to access credit from traditional banks.

Lobelle said that after 10 years of building payment infrastructure, Paystack realised businesses needed more than a way to get paid, and that bringing a banking licence in-house allows the company to pair technology-led products with the safeguards of regulated banking.

Lending built on payments data

Leveraging transaction data from its payments gateway, Paystack MFB plans to offer working-capital loans, merchant cash advances and overdrafts, with approval timelines shorter than those of conventional lenders.

The bank also plans to roll out application programming interfaces that will allow startups and developers to integrate digital accounts and savings products into their platforms without holding separate banking licenses. While the initial focus is on businesses, Paystack said it plans to expand into consumer lending over time.

As part of the expansion, Paystack will also integrate its digital wallet app, Zap, launched in early 2025, into the microfinance bank’s offerings.

Paystack also strengthens fintech footprint

Founded in 2016 by Akinlade and Ezra Olubi, Paystack operates in Nigeria, Ghana and South Africa. The company processes more than half of Nigeria’s online payments and serves over 60,000 businesses, including MTN, FedEx, UPS and Piggyvest. It was among Y Combinator’s earliest African-backed startups and was later acquired by Stripe.

According to Billionaires Africa, The move into banking positions Paystack as a stronger competitor to digital-first financial firms such as Moniepoint, OPay and Kuda, as well as established microfinance operators including LAPO. Analysts further say the acquisition enhances Paystack’s ability to help African businesses manage cash flows and access credit within a single ecosystem.