Zap: Paystack’s Bold Move Into Consumer Payments

Nine years ago, Shola Akinlade, CEO of Paystack, set out to make online payments seamless. That vision paid off when Stripe acquired Paystack for $200 million. Now, the company is entering a new phase with Zap, a consumer-focused payment app designed to simplify money transfers across Nigeria. This move marks a significant shift for Paystack, a fintech primarily known for serving businesses.

With Zap, users can send money to any Nigerian bank account in less than 10 seconds. Unlike traditional banking apps that require multiple steps, Zap streamlines the process—just link a bank account, deposit funds, and start transferring. Users can fund their Zap wallets either through direct debit via Paystack’s infrastructure or by depositing money into a Paystack-Titan Trust Bank account.

However, Zap comes with certain limitations. Only commercial bank accounts can be linked through Paystack Vault, excluding neobank users from platforms like OPay, PalmPay, and Moniepoint. Additionally, Zap’s transaction fees make it slightly more expensive than its competitors. Depositing ₦10,000 via a linked bank account incurs a ₦35 charge, while withdrawing ₦9,900 costs ₦25, bringing total fees to ₦50. While this pricing might be a drawback for price-sensitive users, Akinlade insists that the fees will evolve over time.  

Expanding Financial Connectivity—Beyond Borders

One of Zap’s standout features is its ability to link international debit and credit cards. During a live demo at Paystack’s showcase event, Akinlade transferred money from his Bank of America card to a Nigerian account almost instantly. This functionality could position Zap as a bridge for global transactions, allowing Nigerians abroad to send money home with unprecedented speed.

However, Paystack is not branding Zap as a remittance service—yet. Akinlade clarified that Zap is optimized for instant, everyday transfers, rather than cross-border money remittances. “If you’re sending money to Nigeria from abroad, you can wait a couple of minutes,” he said. “Our priority is immediate delivery.” 

To ensure compliance and security, Zap requires users to complete Know Your Customer (KYC) verification before accessing its features. Depending on the verification level, users can send anywhere from ₦50,000 to ₦5 million daily and hold balances up to ₦100 million.  

How Zap Could Disrupt the African Fintech Landscape  

Zap’s launch comes at a time when bank transfers dominate digital payments in Nigeria. In 2023, bank transfers made up 58% of transactions processed by Paystack, doubling from 28% in 2022. The company has already built a strong pay-by-account infrastructure, including products like Paystack Terminal for in-person transactions. Now, Zap is set to push that ecosystem even further.

For businesses, Zap presents a game-changing opportunity. By keeping funds within Paystack’s ecosystem, merchants can enjoy faster settlements, fewer intermediaries, and improved transaction reliability. For example, if a food delivery service like Chowdeck uses a Paystack-Titan account, payments made via Zap will never leave Paystack’s network, ensuring faster processing times.

This closed-loop model allows Paystack to control the entire transaction flow, giving businesses a more efficient and predictable financial infrastructure. Unlike conventional banking channels that rely on multiple parties to process payments, Paystack can optimize speed, security, and reliability—an advantage that could attract businesses looking for more seamless payment solutions.  

Competing with Nigeria’s Biggest Fintech Players

By entering the consumer payments market, Paystack is now competing with fintech heavyweights like OPay, PalmPay, Kuda, and Moniepoint. These platforms exploded in popularity during Nigeria’s cash scarcity in 2023 by offering fast and reliable digital transfers. With Kuda boasting over 7.2 million users and OPay exceeding 30 million, Paystack has a steep hill to climb.

However, Akinlade is confident that Zap’s edge lies in its superior user experience. “We are not competing against other fintechs,” he said. “Our ideal users are people who send money frequently and are always on the move—think of Nigerians traveling across Africa. Our audience values taste, speed, and reliability.”

Zap’s minimalist interface makes it an attractive alternative to cluttered banking apps. The home screen prominently displays the user’s balance, recent transactions, and a single ‘Send Money’ button—a design choice that simplifies the transfer process.

The Road Ahead—Can Paystack Win in Consumer Payments?

Despite Zap’s promise, its success hinges on one critical factor: pricing. While Paystack excels at providing a frictionless experience, many Nigerians are highly price-sensitive. With rising inflation and economic pressure, customers may prioritize lower fees over premium design.

To gain traction, Paystack may need to adjust its pricing structure or introduce incentives that make Zap a more compelling alternative to established players. Its real power, however, lies in its existing business network. By integrating Zap with merchants, service providers, and freelancers, Paystack could create an ecosystem where money moves more seamlessly than ever before.

Akinlade remains undeterred by competition. “A lot of our work is about shaping the country’s experience,” he said. “It’s important to me that things in Nigeria are as elegant as anywhere else. Zap will get even better.”  

With the right strategy, Zap could redefine how money moves in Africa—one instant transfer at a time.