Paystack moves into lending as it acquires Ladder Microfinance Bank
Paystack is expanding beyond payments into lending after acquiring Ladder Microfinance Bank. The deal gives the Stripe-owned fintech a banking licence, allowing it to offer loans, hold deposits, and launch new financial services in Nigeria
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Paystack has acquired Ladder Microfinance Bank in a bid to move beyond traditional payments, marking its formal entry into regulated banking and lending in Nigeria <br />
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The deal grants Paystack a microfinance banking licence, enabling the company to hold deposits and issue loans, capabilities it could not previously offer under its switching and payments-only licence.<br />
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Per TechCabal, the newly acquired entity will be rebranded as Paystack Microfinance Bank (Paystack MFB) and operate as a separate regulated unit within the Paystack corporate family.<br />
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Paystack’s Chief Operating Officer, Amadine Lobelle, told TechCabal that Paystack MFB will start by offering lending products to businesses before eventually expanding into consumer loans and broader financial services.<br />
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The bank will also roll out banking-as-a-service (BaaS) products for companies building financial tools and treasury solutions.<br />
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The acquisition is a strategic pivot for Paystack, which has spent nearly a decade building payment infrastructure used by hundreds of thousands of businesses but relied on partner banks to hold customer funds.<br />
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With a microfinance licence, Paystack can now exercise greater control over money flows and offer more tailored banking services directly to businesses that currently use its payment gateway.<br />
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This is not the first time Paystack has attempted to expand beyond its role as a payment gateway. It launched its first consumer app, Zap, in March 2025.<br />
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Paystack’s move to own an MFB instead of partnering with one is similar to Flutterwave’s recent acquisition of Mono, a major service provider for the payment company and its competitors.<br />
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However, in Paystack’s case, the acquisition of Ladder Microfinance Bank Industry puts it in direct competition with both traditi...
