Nigerian fintech Paystack is broadening its focus beyond payment processing by reorganizing its business structure, its CEO told Semafor. Five years after being acquired by U.S. fintech Stripe, Paystack is launching a new parent company called The Stack Group (TSG) as it pushes into banking and consumer financial services.
Paystack celebrated its tenth anniversary with the creation of TSG, which will oversee several distinct brands. These include Paystack’s core merchant payments business, the consumer-oriented money transfer app Zap, a newly acquired microfinance institution now called Paystack Microfinance Bank, and a research and development division.
The restructuring reflects recent strategic moves by the company, including launching Zap in 2025 and acquiring Ladder Microfinance Bank, now operating under the Paystack microfinance licence. According to CEO Shola Akinlade, customers had been asking for a wider set of financial tools, prompting the shift. “We’re betting on African entrepreneurs,” he said, noting that Paystack supports about 300,000 merchants.
Founded in Lagos in 2016 as a payments processor serving Nigerian businesses, Paystack expanded into several African markets , including Côte d’Ivoire, Ghana, Kenya, and South Africa ,after Stripe bought it for around $200 million in 2020. The creation of the holding company comes after Paystack reached profitability across its markets for the first time last year.
The move also follows internal leadership controversy: co-founder Ezra Olubi was dismissed in November amid allegations of misconduct and has threatened legal action, though TSG has confirmed he will not hold a stake in the new group.
Under the updated structure, TSG is backed by three founding shareholders: Stripe, Paystack’s employees, and Akinlade himself, who has made a personal investment, though details were not disclosed. The agreements establishing TSG were signed in October 2025 and are awaiting regulatory approval.
Analysts say the new setup allows the group to offer a broader range of services, from payments and money transfers to lending and potentially other products developed by its R&D arm, but that growth will require patience as it enters competitive areas of fintech and banking
