Paystack has been hit with a ₦250 million fine by the Central Bank of Nigeria (CBN) for running its new money app, Zap, without the right license. The CBN says the app, which lets users send and receive money, functions like a digital wallet — something only licensed institutions are allowed to operate.
The issue? Paystack only has a switching and processing license. That means it can’t hold customer funds directly. But Zap appears to do just that. Even though Paystack partnered with Titan Trust Bank to handle the money side, the CBN wasn’t satisfied.
This fine adds to growing tension between Nigerian fintechs and regulators. Earlier this year, OPay and Moniepoint were each fined ₦1 billion for KYC and licensing breaches. It’s clear the CBN is tightening the rules and watching the sector closely.
Paystack, now owned by Stripe, says it’s working with the regulator but isn’t making public comments for now.
