Nine years after launching Paystack to simplify online payments—a vision that led to a $200 million acquisition by Stripe—Shola Akinlade is making another bold move. This time, he is shifting focus from businesses to consumers with Zap, a new app designed for instant money transfers.
Zap allows users to send money to any Nigerian bank account in under 10 seconds. Customers can fund their Zap wallets by linking their bank accounts via Paystack’s direct debit system or depositing funds into a Paystack-Titan Trust Bank account. However, only commercial banks are supported, excluding popular neobanks like OPay, PalmPay, and Moniepoint.
Zap’s transaction fees make it costlier than its competitors. Depositing ₦10,000 from a linked account costs ₦35, while withdrawing ₦9,900 incurs a ₦25 fee, bringing the total charge for a full deposit and withdrawal to ₦50. Akinlade acknowledged that pricing will evolve.
A key feature of Zap is its ability to link debit and credit cards from any country. At a company event, Akinlade demonstrated an instant transfer from his U.S.-issued Bank of America card to a Nigerian account. While this mirrors a remittance service, he clarified that Paystack is not targeting that market yet. Instead, Zap is designed for visitors making transactions in Nigeria rather than facilitating overseas money transfers.
Users must complete Know Your Customer (KYC) checks to transact on the app. Tier-1 users, verified with only their Bank Verification Number (BVN), can send up to ₦50,000 daily and maintain a ₦200,000 balance. Tier-2 users, who provide a selfie, address, and National Identification Number (NIN), have a ₦200,000 daily limit and a ₦500,000 balance cap. Tier-3 users, after verifying their address, can send up to ₦5 million daily and hold up to ₦100 million.
Paystack has seen rapid growth in bank transfers, with the payment method accounting for 58% of its transactions in 2023, up from 28% in 2022. The fintech has been expanding its pay-by-bank infrastructure, integrating with players like OPay and launching products such as Paystack Terminal for in-person payments. This shift has made bank transfers the dominant payment channel on its network, surpassing card transactions.
Zap marks Paystack’s entry into consumer payments, positioning it against established fintechs like OPay, Kuda, PalmPay, and Moniepoint. These competitors gained millions of users during Nigeria’s 2023 cash crunch by providing fast, reliable digital payments. OPay alone boasts over 30 million users, while Kuda has 7.2 million.
For Zap to thrive, Paystack must refine its pricing strategy, as affordability is a key concern in Nigeria’s inflation-hit economy. However, Akinlade remains confident, emphasizing Zap’s speed, simplicity, and reliability. “We are not competing with other fintechs. Our audience values great experiences—taste, speed, reliability,” he said.
If Paystack succeeds in embedding Zap into Nigeria’s financial ecosystem, it will not only strengthen its control over money flows within its network but also redefine digital payments for Nigerian consumers.
