Paystack moves into lending as it acquires Ladder Microfinance Bank
The acquisition gives Paystack access to a microfinance banking licence, allowing it to accept deposits and issue loans capabilities that were previously out of reach under its payments and switching licence. According to TechCabal, the bank will be rebranded as Paystack Microfinance Bank and will operate as a separate, regulated entity within the Paystack group.
Paystack’s Chief Operating Officer, Amadine Lobelle, said the new bank will initially focus on lending to businesses before expanding into consumer loans and additional financial services. Paystack MFB will also introduce banking-as-a-service products, targeting companies that are building financial tools, embedded finance solutions, and treasury platforms.
The deal represents a clear pivot for Paystack. Since its founding, the company has built payment infrastructure used by hundreds of thousands of businesses across Nigeria, but it has always depended on partner banks to hold customer funds. Owning a microfinance bank gives Paystack direct control over deposits, lending, and money flows, enabling it to design more tightly integrated financial products for its merchant base.
This is not Paystack’s first attempt to expand beyond payments. In March 2025, the company launched Zap, its first consumer-facing app, signalling broader ambitions in financial services. Acquiring a licensed bank, however, takes that ambition much further by placing Paystack squarely within Nigeria’s regulated banking system.
The move mirrors a broader trend among African fintechs seeking deeper control over their value chains. Flutterwave’s recent acquisition of Mono followed a similar logic, though Paystack’s approach differs by bringing a licensed bank directly into its corporate structure rather than acquiring a service provider.
With this acquisition, Paystack now enters direct competition with traditional microfinance banks and a crowded field of digital lenders, including Carbon, FairMoney, Moniepoint, OPay, PalmPay, and Kuda. These players already combine payments, deposits, and lending in Nigeria’s fast-growing fintech ecosystem.
Read More: Flutterwave Acquires Mono in Rare African Fintech Exit
Despite the competition, the opportunity remains significant. Nigeria’s small business credit gap is estimated at around ₦13 trillion, leaving millions of businesses underserved by existing financial institutions. With more than a decade of transaction data and deep relationships with merchants, Paystack is well positioned to assess risk and design lending products tailored to the realities of small and medium-sized businesses.
The acquisition of Ladder Microfinance Bank signals that Paystack is no longer content to sit at the edge of banking. Instead, it is positioning itself to become a full-stack financial services provider, using lending and regulated banking as the next growth lever in Nigeria’s fintech market.
