Nigerian fintech Paystack, a digital payments company, said on Wednesday it is moving into banking with the launch of Paystack Microfinance Bank, expanding beyond its core payments business.
Local media reported that the new bank was created after Paystack acquired Ladder Microfinance Bank, giving it a banking licence. Paystack, which is owned by U.S. payments group Stripe, did not disclose the deal value or the bank’s capital.
The company said Paystack Microfinance Bank will operate independently from Paystack Payments Limited, with its own leadership, dedicated team and separate roadmap focused on customers’ financial needs.
“After 10 years of building payment infrastructure and going deep, we realised that businesses needed more than just getting paid to grow,” Paystack said. It added that the move into banking would allow it to address a broader range of financial needs.
