Paystack’s Zap: A Game-Changer or Just Another Payment App?

After nine years of operating as a strictly B2B payment gateway, Paystack has entered the consumer market with Zap, a new app designed to simplify bank transfers. Announced by CEO Sola Akinlade at a special launch event, Zap promises to complete transfers in under 30 seconds by allowing Nigerians to link their existing bank accounts to the app.

This move signals a shift in Paystack’s strategy—one that expands its reach beyond businesses to everyday consumers. But does Zap truly stand out, or is it another addition to Nigeria’s crowded fintech ecosystem?

A Different Approach to Digital Banking?

Unlike neobanks, which create entirely new digital accounts, Zap integrates with traditional bank accounts, enabling direct transfers without needing a separate banking platform. However, not all financial institutions are supported—microfinance banks like OPay, PalmPay, and Moniepoint are notably absent from the list of linkable accounts.

Additionally, while users can connect multiple bank accounts, Paystack still assigns them a Paystack-Titan account, which acts as an intermediary. Instead of holding funds, it allows instant debits from linked accounts, reducing the need for manual transfers between bank apps.

For expatriates and foreigners in Nigeria, Zap also introduces a cross-border payment feature. Akinlade demonstrated this by transferring money from a Bank of America account to a Nigerian account—suggesting a broader vision beyond local transactions.

The Bigger Picture: A Customer Acquisition Play?

While Paystack insists Zap is not a neobank, its core function—enhancing the speed and ease of transfers—positions it as a major player in digital payments. More importantly, by positioning Zap as a tool for linking existing accounts, Paystack could be using this as a Trojan horse for customer acquisition.

The strategy is clear: leverage Paystack’s infrastructure to integrate into consumer financial habits without requiring them to open new accounts. This allows Paystack to strengthen its presence in everyday transactions while avoiding the regulatory hurdles that come with operating as a full-fledged digital bank.

Performance and Market Positioning

Beyond the product launch, Paystack also shared impressive operational metrics: in Q4 2024, the company processed three billion API requests and recorded just nine and a half minutes of downtime for the entire quarter. These figures highlight its reliability as a payment processor, a critical factor as it ventures into consumer-facing products.

However, its success will depend on several factors:

User adoption – Will consumers trust and prefer Zap over their existing banking apps?

Regulatory landscape – How will regulators respond to Paystack’s deeper consumer involvement?

Competitive response – How will traditional banks and fintech rivals react?

Final Thoughts

Paystack’s entry into the B2C space is strategic, and Zap could set a new standard for bank transfers if execution matches ambition. However, in an ecosystem already filled with digital payment solutions, the key challenge will be differentiation.

For now, Zap may not be a full-fledged neobank, but it certainly signals Paystack’s intent to expand beyond its B2B roots. Whether it disrupts Nigeria’s digital banking landscape or simply becomes another tool in the fintech arsenal remains to be seen.