Paystack has acquired Ladder Microfinance Bank, marking a major step beyond traditional payment services and signaling its formal entry into regulated banking and lending in Nigeria. The acquisition grants Paystack a microfinance banking licence, allowing the company to hold deposits and issue loans, capabilities previously unavailable under its payments-only licence.
The newly acquired entity will be rebranded as Paystack Microfinance Bank (Paystack MFB) and operate as a separate regulated unit within the Paystack corporate structure. Paystack’s Chief Operating Officer, Amadine Lobelle, told TechCabal that the bank will initially offer lending products to businesses before expanding into consumer loans and broader financial services. Additionally, Paystack MFB will roll out banking-as-a-service (BaaS) solutions for companies building financial tools and treasury products.
This move represents a strategic pivot for Paystack, which has spent nearly a decade building payment infrastructure for hundreds of thousands of businesses but previously relied on partner banks to hold customer funds. With its own microfinance licence, Paystack can now manage money flows directly and deliver more tailored banking services to businesses using its payment gateway.
Paystack’s attempt to move beyond payments is not new. The company launched its first consumer app, Zap, in March 2025. Unlike partnerships with banks, owning a microfinance bank gives Paystack greater autonomy over its products, similar to Flutterwave’s acquisition of Mono.
The acquisition places Paystack MFB in direct competition with traditional microfinance banks and digital lenders such as Carbon, Fairmoney, Moniepoint, OPay, PalmPay, and Kuda, all of which blend payments, deposits, and lending services in Nigeria’s dynamic fintech sector. Despite a crowded market, Nigeria still faces a significant small business credit gap, estimated at ₦13 trillion. With over a decade of experience helping businesses receive online payments, Paystack is well-positioned to meet these financing needs.
