After a decade of processing payments for thousands of Nigerian businesses, Paystack has a clear view of what merchants want next: access to capital, better treasury management, and a safe place to hold their funds.
To meet those needs, the fintech has acquired Ladder Microfinance Bank (MFB), a Nigerian microfinance bank, adding the new entity to its group. The new entity, Paystack Microfinance Bank (MFB), will operate independently from the payments business, though both companies will collaborate on products within regulatory limits.
The licence gives Paystack a powerful advantage. With access to one of Africa’s largest online payment datasets, Paystack MFB can underwrite loans based on a merchant’s historical payment flows rather than account balances. It can also design savings and treasury products tailored to how businesses actually earn and spend money.
More strategically, the move allows Paystack to move beyond payment processing. By housing funds within its own banking entity, the company gains greater control over the money flowing through its network, an edge over its payment competitors.
Paystack MFB also plans to offer banking-as-a-service products, enabling other platforms to embed banking features into their offerings. If successful, the move could do for digital banking what Paystack did for online payments a decade ago.
But the market is crowded. Nigeria already has no shortage of business banks and neobanks, all competing alongside legacy banks. To win deposits, Paystack MFB will lean on yield incentives and instant settlement for merchants that collect payments via Paystack.
Just two weeks into the new year, Nigeria’s fintech sector has already recorded two acquisitions, following Flutterwave’s purchase of Mono last week. It’s an early signal that 2026 may be another busy year for dealmaking.
