Six years after Stripe, Paystack is learning to keep money

Six years after Stripe acquired the Nigerian startup Paystack in October 2020, the company has grown and evolved significantly. Initially valued at $200 million, Paystack expanded its reach to serve businesses across several African countries, including Côte d'Ivoire, Ghana, Kenya, Nigeria, and South Africa. The company's original business model focused on processing online payments, taking a 1.5% commission plus ₦100 per transaction, with a cap of ₦2,000 per transaction.

Over time, Paystack's business model evolved to include microfinance services and consumer applications. In May 2024, the company acquired Brass, a business banking startup, which struggled with withdrawal payments. This acquisition demonstrated the company's growing interest in holding customers' money, a step that eventually led Paystack to launch Zap, its first consumer app, in April 2025.

However, the Central Bank of Nigeria fined Paystack ₦250 million for operating Zap as a wallet, which its microfinance license did not cover.

Despite the challenges, Paystack continued to grow. In January 2026, the company acquired Ladder Microfinance Bank, creating The Stack Group, which now includes Paystack MFB, a microfinance bank that lends to businesses and individuals. Paystack MFB's license allows it to take deposits, lend, and earn interest, reducing the company's reliance on transaction fees.

However, Paystack still faces the challenge of acquiring customers one account at a time, as it does not have the same physical presence as some of its competitors.