Paystack Officially Steps Into Banking Via Microfinance Acquisition

Stripe-owned fintech company Paystack has formally entered Nigeria’s banking sector following its acquisition of a licensed microfinance bank, marking a strategic expansion beyond payments.

The company announced the launch of Paystack Microfinance Bank, noting that the new institution will operate as a separate entity with its own licence, governance structure and product roadmap, while maintaining close collaboration with Paystack’s core payments business.

Paystack said its move into banking is informed by insights gained from serving hundreds of thousands of businesses and millions of users across the country. The company disclosed that it currently processes transactions worth trillions of naira monthly.

According to Paystack, businesses require more than payment solutions, including secure money storage, seamless fund transfers, financial insights and tools that support growth. Individuals, on the other hand, seek products that help them manage, protect and grow their money.

The new microfinance bank will gradually roll out services to businesses and individuals, starting with a limited group of early users. The acquisition provides Paystack with a regulated platform to offer broader financial services as fintech and banking continue to converge.

The company also emphasised that developers remain central to its strategy, noting that modern financial services rely on secure, compliant infrastructure that enables rapid product innovation.