CBN slaps PayStack with Naira 250 million fine for launching Zap without approval
In a major regulatory move, the Central Bank of Nigeria (CBN) has imposed a hefty ₦250 million (approximately $190,000) fine on fintech giant Paystack for allegedly breaching the terms of its operating licence. The sanction stems from Paystack’s latest consumer-facing product, Zap by Paystack, which the apex bank claims is functioning beyond the company’s regulatory boundaries.
Launched in March, Zap is a peer-to-peer money transfer app that, according to the CBN, operates as a de facto digital wallet—an activity strictly reserved for institutions with microfinance or full banking licences. Paystack, however, is only licensed as a switching and processing company, allowing it to facilitate payments between financial institutions but explicitly prohibiting it from holding customer funds.
A source with direct knowledge of the situation told [publication name] that the CBN considers Zap to be a deposit-taking product, a regulatory grey zone the central bank is unwilling to overlook.
This enforcement action marks a significant moment in Nigeria’s evolving fintech landscape, highlighting growing tensions between rapid innovation and regulatory compliance. It also sends a strong signal to other tech companies looking to push the envelope in financial services.
