Nigeria’s Central Bank has fined fintech giant Paystack ₦250 million for allegedly operating its new peer-to-peer payment app, Zap, without the proper licence.
The penalty, issued in late April, is the largest regulatory fine Paystack has faced since receiving approval to operate in 2016. According to sources familiar with the matter, the Central Bank claims Zap functions as a digital wallet-a service that requires a microfinance or banking licence because it involves holding customer funds. Paystack, however, only holds a switching and processing licence, which allows it to route transactions but not to store money on behalf of users.
Zap, launched in March, was designed to help Nigerians send and receive money easily. While Paystack says the app does not directly hold customer funds and instead partners with Titan Trust Bank to manage deposits, the Central Bank maintains that the product’s features cross the line into regulated territory.
A Paystack spokesperson said, “Paystack is working closely with the regulator as they further review Zap, and out of respect for the process, we won’t be making any public comments at this time.”
In 2024, Moniepoint and OPay were each fined ₦1 billion over compliance issues, signaling a tougher stance on digital finance.
Zap’s launch has also sparked a legal dispute, with crypto startup Zap Africa accusing Paystack of trademark infringement-a case that remains unresolved.
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