Paystack has launched a microfinance bank in Nigeria, marking a major expansion of its role from payment processing into broader financial services for businesses and individuals.
The Stripe-owned Nigerian fintech disclosed the launch on Wednesday.
|
|
The new entity, Paystack Microfinance Bank (MFB), will operate independently of Paystack Payments Limited, the company said, with its own licence, governance structure and product roadmap. While the two firms will work closely, Paystack said each would focus on its specific mission.
Founded in Nigeria ten years ago to simplify digital payments, Paystack has grown into one of Africa’s most prominent fintech companies, operating in five countries and processing trillions of naira in transactions every month. Its services currently support about 300,000 businesses and millions of customers across Nigeria.
|
|
|
|---|
The company said its expansion into banking was driven by the realisation that payments alone were not enough to meet the needs of modern businesses and individuals, many of whom require tools to save, move, understand and grow their money.
“Businesses don’t just need to get paid. They need a financial operating system,” Paystack said in the statement announcing the launch.
Nigeria’s fintech sector has expanded rapidly over the past decade, enhancing access to digital payments and basic financial services.
Paystack said the new bank would initially open to a small group of users, with plans to gradually onboard more businesses and individuals over time.
The company said it would bring the same principles that guided its payments business, reliability, simplicity, transparency and trust, into its banking operations.
The launch followed Paystack’s acquisition of Ladder Microfinance Bank, a move that deepened its push into consumer-facing financial services.
The microfinance licence builds on an expansion that began last year with the launch of its consumer payments app, Zap, and now provides regulatory backing for Paystack to operate as a deposit-taking institution.
READ ALSO: US suspends visa processing for Nigeria, 74 other countries
“After 10 years of building payment infrastructure and going deep, we realised that businesses needed more than just getting paid to grow,” Amandine Lobelle, Paystack’s chief operating officer, said in comments to TechCabal.
She said the company was seeking to apply the capabilities it had built over the past decade to address persistent financial frictions faced by businesses.
The move comes as Nigerian fintech firms increasingly pursue acquisitions and licences to strengthen their platforms.
Last week, Flutterwave acquired open-banking startup Mono, a deal aimed at expanding its access to banking data, identity services and account connectivity.
The move positions Paystack to play a bigger role in Nigeria’s evolving financial system, as competition intensifies among fintech firms seeking to offer end-to-end financial services beyond payments.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
