Paystack Moves Into Lending As It Acquires Ladder Microfinance Bank

 

Paystack has completed the acquisition of Ladder Microfinance Bank, marking a significant step in the fintech company’s transition from a payments-focused platform to a broader financial services provider.

The deal gives Paystack a microfinance banking licence, enabling it to accept deposits and issue loans—functions it could not perform under its previous switching and payments-only licence. The move formally positions Paystack within Nigeria’s regulated banking space as it seeks to expand its product offering beyond payments.

It was gathered that the acquired institution will be rebranded Paystack Microfinance Bank (Paystack MFB) and operate as a separate regulated unit within the Paystack group, maintaining regulatory oversight while supporting new product development.

Paystack’s Chief Operating Officer, Amadine Lobelle, said the company plans to roll out lending products initially for businesses before gradually expanding into consumer loans and additional financial services. The phased approach reflects Paystack’s focus on serving merchants already using its payments infrastructure.

In addition to lending, Paystack MFB is expected to introduce banking-as-a-service (BaaS) products, allowing startups and enterprises to build embedded finance, treasury, and money-management solutions on Paystack’s platform.

The acquisition represents a strategic pivot for Paystack, which has spent nearly a decade building payment infrastructure for hundreds of thousands of businesses while relying on partner banks to hold customer funds. With its own microfinance licence, Paystack gains greater control over money flows and the ability to design more tailored credit and banking products.

The move mirrors a broader trend across Africa’s fintech sector, where payment companies are increasingly securing regulated licences to unlock lending, deepen customer relationships, and capture more value across the financial stack.