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Paystack has announced the creation of The Stack Group (TSG) as its new parent holding company, marking a significant structural shift following its entry into regulated banking services.
The move comes shortly after the fintech company acquired Ladder Microfinance Bank, signalling a broader strategy to consolidate its expanding technology and financial services businesses across Africa.
Why Paystack Created The Stack Group
According to the company, The Stack Group will serve as a corporate umbrella for Paystack’s growing portfolio of businesses, each operating independently but aligned under a shared ownership and governance structure.
Agreements establishing TSG as the parent company were signed in October 2025, with the structure still subject to regulatory approvals.
Founding shareholders include Stripe, Paystack co-founder and CEO Shola Akinlade, and existing Paystack employees.
How the New Structure Will Work
Under the new arrangement, TSG will oversee several businesses operating across payments, banking, consumer finance, and technology development.
At launch, the group includes:
- Paystack, focused on merchant payment processing
- Zap, which operates in consumer payments
- Paystack Microfinance Bank, providing banking and credit services
- TSG Labs, dedicated to emerging technologies and new product development
Each unit will remain operationally independent while benefiting from shared expertise and strategic oversight.
What Paystack Is Saying
Paystack said the creation of The Stack Group builds directly on the launch of Paystack Microfinance Bank, which allows the company to internalise critical financial infrastructure.
Operating the bank as a standalone entity enables the group to offer banking and credit services directly to its merchant base, while maintaining regulatory separation from its payments business.
The company added that the businesses are united by a shared focus on building technology products tailored to Africa’s unique challenges.
Why the Holding Company Model Matters
The shift to a holding company structure reflects the increasing regulatory complexity facing fintech firms that operate across multiple financial segments.
Payments, banking, and consumer financial products are regulated differently, and housing them under a holding company allows licences, compliance obligations, and risk exposure to be clearly ring-fenced.
This model has become common among Nigerian fintechs such as Interswitch and Moniepoint, offering flexibility to scale existing businesses while launching new ventures without exposing core operations to unnecessary risk.
What You Should Know
Paystack was acquired by Stripe in 2020 in a landmark $200 million deal, one of the largest fintech acquisitions in Nigeria’s history.
Since then, the company says its payment volume has grown twelvefold, alongside geographic expansion across the continent.
Paystack currently operates in Nigeria, Ghana, Côte d’Ivoire, Kenya, and South Africa, with regulatory approvals already secured for Egypt and Rwanda. These markets collectively represent about 46% of Africa’s GDP.
The Bigger Picture for Nigeria’s Fintech Sector
The creation of The Stack Group highlights a broader shift within Nigeria’s fintech ecosystem, as companies evolve from single-product platforms into multi-business financial groups.
As fintechs deepen their involvement in regulated banking and credit, structural separation is becoming essential for compliance, investor confidence, and long-term sustainability.
For Paystack, the new structure positions the company to expand responsibly across payments, banking, and emerging financial services while maintaining operational stability
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