Nigerian fintech, Paystack, has announced the acquisition of Ladder Microfinance Bank, signalling a major expansion beyond payment services.
The company announced the launch of Paystack Microfinance Bank on Wednesday, ten years after starting operations in Nigeria.
The development comes barely a week after another leading Nigerian fintech, Flutterwave, acquired open banking startup Mono to strengthen its payments stack with open banking, data, and identity capabilities.
According to the statement, the new microfinance bank will operate independently of Paystack Payments Limited, with its own license, governance structure, and product roadmap, while working closely with the core payments business.
The decision to move into banking is driven by insights gained from supporting over 300,000 businesses and millions of consumers across Nigeria, the company disclosed, adding that its systems currently process trillions of naira every month, highlighting the central role it already plays in Nigeria’s financial ecosystem.
“Payments are a critical part of the financial journey, but not the whole story. Businesses don’t just need to get paid. They need a financial operating system,” Paystack said in the statement.
The company noted that beyond accepting payments, businesses need tools to store money securely, move funds easily, gain clarity through financial data, and grow with confidence.
The statement noted that individuals, on the other hand, now want financial products that help them protect, grow, and use their money as their ambitions evolve.
To address these needs, Paystack said it is launching Paystack Microfinance Bank as a separate company dedicated to building banking products, while Paystack Payments Limited continues to focus on payment infrastructure.
According to the company, Paystack Microfinance Bank will be built around the same principles that shaped Paystack’s payments.
The company said it has already onboarded a small group of early users and plans to gradually open the platform to more businesses and individuals over time.
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The acquisition of Ladder Microfinance Bank provides Paystack with a regulated foundation to offer banking services, as Nigeria’s fintech landscape continues to blur the lines between payments, banking, and broader financial services.
Paystack also emphasised that developers remain a key part of its strategy, noting that modern financial services require reliable, secure, and compliant infrastructure that allows builders to create new products quickly.
Paystack, founded in 2015 by Ezra Olubi and Shola Akinlade, was acquired by global fintech giant Stripe in 2020 in a $200 million deal.
