Paystack has launched Zap, a lightning-fast money transfer app for Nigerian consumers. Designed for seamless transactions, Zap challenges fintech giants like OPay and PalmPay. While pricing may be higher, Paystack bets on superior speed and reliability to attract users. CEO Shola Akinlade hints at further improvements to the platform.
Paystack, a leading fintech known for streamlining business payments, is expanding into consumer banking with Zap, a new money transfer app. With instant transactions and seamless integrations, Zap aims to reshape Nigeria’s digital payments landscape, placing Paystack in direct competition with established fintech giants like OPay, PalmPay, and Moniepoint.
Since its acquisition by Stripe for $200 million, Paystack has primarily focused on business transactions. However, with over half of its processed transactions now coming from bank transfers, the company is pivoting towards a consumer-driven model. Zap enables users to send money to any Nigerian bank account in under 10 seconds.
Funding a Zap account is straightforward—users can link a commercial bank account through Paystack Vault or deposit funds into a Paystack-Titan account. However, fintech-based neobanks like OPay and PalmPay are not currently supported, giving Zap a unique, albeit limited, niche in the ecosystem.
Zap’s pricing structure differs from its competitors. Depositing ₦10,000 via a linked account incurs a ₦35 fee, while withdrawing ₦9,900 adds another ₦25 charge. This makes the service more expensive than some rivals, but CEO Shola Akinlade has hinted at potential adjustments.
Users can also link debit or credit cards from any country, facilitating instant transfers. While this may resemble a remittance service, Paystack insists Zap is not targeting cross-border payments—at least not yet. Instead, the company envisions Zap as a tool for quick domestic transfers, especially for frequent travelers.
To use Zap, customers must complete Know-Your-Customer (KYC) verification. Tier-1 users, who verify with their Bank Verification Number (BVN), can send up to ₦50,000 daily and maintain a maximum balance of ₦200,000. Tier-2 users, who provide a selfie, physical address, and National Identification Number (NIN), can transfer up to ₦200,000 daily and hold a ₦500,000 balance. Tier-3 users, after verifying their physical address, can send up to ₦5 million daily and hold ₦100 million in their accounts.
Zap positions Paystack against major players like Kuda, Moniepoint, and PalmPay, all of which gained millions of users during Nigeria’s cash shortages. With 7.2 million Kuda users and OPay’s 30 million-strong customer base, Paystack faces an uphill battle in winning over consumers.
Akinlade believes Zap’s success hinges on superior speed and reliability rather than price wars. “We aren’t trying to compete directly with other fintechs. Our focus is on users who demand the best transfer experience—fast, seamless, and reliable.”
For Paystack to thrive in the consumer space, it may need to revisit its pricing model. With inflation pressing on Nigerian consumers, affordability could be just as crucial as efficiency. Still, Akinlade remains optimistic: “Zap will keep evolving. We’re committed to making financial transactions in Nigeria as elegant and efficient as anywhere else in the world.”
