Paystack, founded by Shola Akinlade, has announced a strategic expansion into banking and lending to tackle Nigeria’s estimated $32 billion SME financing gap. The fintech recently acquired Ladder Microfinance Bank, rebranding it as Paystack Microfinance Bank, which will offer deposit-taking, lending, and customised credit solutions for small and medium enterprises.
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Strategic acquisition for SMEs
The acquisition of Ladder Microfinance Bank enables Paystack to move beyond payments into full financial services for SMEs. Analysts say this step can transform access to finance for businesses that have traditionally struggled with limited options from commercial banks.
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Leveraging data for financial solutions
By using existing payment and transactional data, Paystack can provide tailored financial products to SMEs. This includes flexible lending, digital savings tools, and integrated banking solutions designed to improve liquidity, operational efficiency, and business growth.
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Reducing barriers to financing
Nigeria’s SME sector has long faced barriers in accessing credit. Paystack’s expansion is expected to address this gap, offering SMEs a reliable alternative to traditional banks and increasing financial inclusion. This move also reflects a global trend where fintech platforms evolve into comprehensive financial service providers for small businesses.
Paystack’s move into microfinance signals a major shift in Nigeria’s SME financing landscape. By providing digital, accessible, and tailored financial services, the fintech is poised to reduce Nigeria’s SME credit gap and support business expansion nationwide.
