Paystack eyes growth beyond payments with restructuring

The overhaul follows Paystack’s firing of co-founder Ezra Olubi in November over allegations of inappropriate behavior. Olubi has threatened legal action, claiming he was fired before an investigation into the allegations was completed. Akinlade said Olubi would not have a stake in TSG but declined to comment further.

TSG has three founding shareholders: Stripe, Paystack’s 209 employees, and Akinlade himself, who said he was investing the group, though he refused to disclose the amount.

Agreements establishing TSG as the parent holding company were signed in October 2025, and are subject to regulatory approvals, the group said in a statement.

Akinlade and his team have, with this restructuring, created a stable of companies that offer a broad set of financial services. The entrepreneurs he repeatedly referred to when we spoke could, in theory, turn to different entities within the group for payment processing, money transfers to Nigerian banks, loans and, in the future, other services that will be dreamt up by TSG Labs, the R&D arm. It’s a bold vision. But it also sees the new holding company entering a crowded market with established players that have secured a vital headstart in developing a customer base — particularly in Nigeria, Paystack’s home turf and Africa’s biggest market.

TSG faces stiff competition on multiple fronts. Flutterwave offers payment processing across more African markets than Paystack and, in Nigeria, Interswitch is well established. In Nigerian consumer digital banking Moniepoint, OPay, and Kuda have all developed a loyal customer base in recent years. It will take time and a healthy dose of patience to build up this part of the group to compete effectively.

But the basic fundamentals are promising. Nigeria’s cashless transaction volumes have increased rapidly in the last few years, and there is no sign of this digital transformation slowing. Across the continent, the digital infrastructure needed to facilitate faster connections will only improve, handsets are becoming cheaper, and rapid population growth is increasing the number of new consumers. That, combined with Paystack’s integration with Stripe’s global network, means the group is well positioned to benefit from increased crossborder payments in the coming years.

One unknown is the extent to which this situation was forced by circumstances. The launch of Zap and the microfinance lender acquisition both point to a process that has unfurled over several months. But the timing, so soon after the controversial departure of Paystack’s co-founder, raises questions.

Several challenges lie ahead, particularly where banking is concerned, according to Techmoonshot. “Running a deposit-taking institution requires significant capital reserves,” it warned in an article this month. “While Paystack has Stripe’s backing, the capital intensity of banking differs markedly from payments processing.”

The article concludes that the real test will be in the coming months when the bank “begins onboarding customers, deploying capital, and demonstrating whether a decade of payments expertise translates into banking excellence.”