Paystack one of Africa’s leading financial technology companies, has taken a major step forward by acquiring a Nigerian microfinance bank as it expands its services beyond payment processing into full-fledged banking and financial services.

The acquisition, announced in January 2026, saw Paystack buy Ladder Microfinance Bank, which has now been rebranded as Paystack Microfinance Bank (Paystack MFB). This marks a major evolution for the company, which began in 2015 to help businesses accept online payments and has grown to serve over 300,000 businesses and process trillions of naira in transactions across Africa.

From Payments to Banking

Paystack’s historic move means the company can now hold customer deposits, issue loans, and offer a broader suite of financial services – all functions that were previously unavailable under its payments-only license. The microfinance bank will operate independently of Paystack Payments Limited, with its own license and governance structure, while still working closely with the wider Paystack group.

According to the company’s statement, “Payments are a critical part of the financial journey, but not the whole story.” Paystack says businesses need tools to store money securely, move funds easily, and grow confidently, needs that a microfinance bank can better address.

Earlier, the company relied on partner banks to hold and manage customer funds. Owning its own bank now gives Paystack greater control over money flows and allows it to design products more closely tailored to the needs of the businesses that already use its payment gateway.

What Paystack MFB Will Offer

The newly acquired bank plans to start by offering business lending products, such as working capital loans, merchant cash advances, and overdraft facilities — all designed to help companies manage day-to-day financial challenges more effectively. Later, the bank may expand into consumer loans and broader financial services.

In addition, Paystack MFB is expected to provide banking-as-a-service (BaaS) solutions, where other companies can build financial products on top of its infrastructure — a move that could help developers and startups innovate quickly.

Paystack’s move also comes amid broader company growth: the launch of a new holding company called The Stack Group, which will bring together Paystack’s expanding range of businesses under one umbrella, including the microfinance bank, its consumer payment app Zap, and a new innovation unit called TSG Labs focused on emerging technologies.