Standard Bank eyes stake in OPay ahead of $4 billion US IPO

Standard Bank is reportedly in negotiations to purchase a stake in OPay Digital Services, a leading Nigerian fintech company, prior to the company's planned initial public offering in the United States, according to Bloomberg. The South African bank, the largest by assets in Africa, seeks to acquire a stake in OPay before the fintech proceeds with its US listing, sources familiar with the matter disclosed to Bloomberg.

In May, reports emerged suggesting OPay intended to conduct a US initial public offering with an estimated valuation of roughly $4 billion, backed by investment banks Citigroup, Deutsche Bank, and JPMorgan Chase. The planned share sale is anticipated to occur later in the year. OPay chose not to comment on the reported deal, while Standard Bank stated they do not engage with market speculation but reiterated their commitment to delivering value to their clients across all markets.

The specific amount Standard Bank plans to invest and the percentage stake they are aspiring to attain remain undisclosed. OPay, one of Africa's unicorns, has emerged as one of Nigeria's leading digital financial platforms, providing payment, savings, credit, and other financial services through its mobile-first application. Backed by influential global investors like SoftBank and Sequoia Capital, OPay has expanded its presence beyond Nigeria to countries including Egypt, Pakistan, and Indonesia.

The decision to list in the US has drawn criticism from some Nigerian investors and market participants who question why a company generating the majority of its revenue from Nigeria would opt for a foreign exchange listing instead of the Nigerian Exchange. This debate gained traction recently as Nigerian Exchange Group CEO Temi Popoola called on President Bola Ahmed Tinubu to implement policies that encourage major companies operating in Nigeria, particularly high-growth fintech firms, to list on the local exchange.

Despite this criticism, OPay's financial performance has notably improved ahead of its proposed listing. In 2025, OPay processed $358 billion in gross transaction value (GTV), more than double the $166.2 billion recorded the previous year. Its user base also expanded, with monthly active users increasing by 57% to 39.3 million and daily active users in Q4 rising by 50% to 22.7 million.

OPay operates as a digital financial platform across Nigeria, Indonesia, Egypt, and Pakistan, offering payment, savings, credit, and lifestyle services. The company operates under licenses as a Mobile Money Operator and Microfinance Bank in Nigeria and achieved a first-attempt transaction success rate of over 99% in the fourth quarter of 2025, highlighting the strength of its payment infrastructure.