Paystack creates holding company, The Stack Group, turns profitable, and bets on AI
Paystack says it is now profitable as it launches The Stack Group, a new holding company that brings together its payments, banking, and AI ambitions
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Paystack has launched a new holding company, The Stack Group (TSG), as it continues its expansion beyond payments into banking, consumer finance, and AI-led product development.<br />
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According to Paystack’s statement to Techpoint Africa, the launch of TSG marks a significant step for the company, as it has achieved profitability.<br />
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The holding company will sit above a group of independent but complementary businesses, including Paystack, Paystack Microfinance Bank, Zap, and TSG Labs. This newly created venture studio will develop products both within and outside financial services.<br />
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Agreements establishing the group were signed in October 2025 and are pending regulatory approvals.<br />
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The launch comes as Paystack marks its 10th anniversary and signals a shift from being primarily a payments processor to building broader technology and financial infrastructure for African businesses.<br />
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Since its acquisition by Stripe in 2020, Paystack says its payment volume has grown more than twelvefold.<br />
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The company is licensed and operational in Côte d’Ivoire, Ghana, Kenya, Nigeria, and South Africa, with regulatory approvals underway in Egypt and Rwanda, markets that together account for roughly 46% of Africa’s GDP.<br />
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The formation of TSG follows Paystack’s recent acquisition of Ladder Microfinance Bank (MFB) to create Paystack MFB in Nigeria.<br />
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Operating as a standalone regulated bank, Paystack MFB allows the group to internalise core financial rails and build banking and credit infrastructure for its more than 300,000 Nigerian merchants. This move reduces reliance on partner banks and enables faster development of end-to-end money movement products.<br />
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Alongside its merchant and banking businesses, TSG also includes Zap, a consumer payments product.<br />
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In addition to the new h...
