Amanze Chinonye
Nigerian fintech giant Paystack, owned by U.S.-based Stripe, has formally entered the lending market with the acquisition of Ladder Microfinance Bank, marking a major expansion from its core payments business into regulated banking, Prime Business Africa reports.
The acquisition grants Paystack a microfinance banking licence, enabling it to hold deposits and issue loans services it could not previously provide under its payments-only licence. Ladder will be rebranded as Paystack Microfinance Bank (Paystack MFB) and operate as a separate regulated entity, with its own license, governance, and product roadmap.
From Payments to Full-Service Banking
Paystack began in Nigeria a decade ago with a simple mission: to make it easier for businesses to get paid. Today, it supports 300,000 businesses and millions of buyers, processing trillions of naira monthly, and operates in five African countries.
Join our WhatsApp ChannelRecognizing that payments are just one part of a business’s financial journey, Paystack says it aims to build a comprehensive financial operating system one that helps businesses store, move, and manage money confidently, while also providing developers with reliable infrastructure to build financial solutions.
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Business Lending First
According to Paystack’s Chief Operating Officer, Amadine Lobelle, Paystack MFB will initially focus on business lending, including working capital loans, merchant cash advances, overdrafts, and term loans.
The bank plans to expand into consumer loans and Banking-as-a-Service (BaaS) products for companies building financial tools and treasury solutions.
The move allows Paystack to exercise greater control over money flows and deliver tailored banking services directly to businesses using its payment gateway. It also follows the company’s earlier attempt to expand beyond payments with the launch of its consumer app, Zap, in March 2025.
Navigating Nigeria’s Fintech Lending Landscape
By acquiring Ladder MFB, Paystack enters a competitive space that includes traditional microfinance banks and digital lenders such as Carbon, Fairmoney, Moniepoint, OPay, PalmPay, and Kuda. Despite these players, Nigeria still faces a substantial credit gap for small businesses, estimated at ₦13 trillion, creating opportunities for Paystack MFB to provide much-needed financing.
Shaping the Future of Business Lending
Analysts note that Paystack’s access to real-time payment data gives it an advantage in assessing credit risk and tailoring loan products more efficiently than conventional banks.
The acquisition underscores Paystack’s ambition to evolve from a payments provider into a full-service financial services company, leveraging its decade-long experience in supporting businesses’ financial operations.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
