The Central Bank of Nigeria (CBN) has fined leading fintech company, Paystack, the sum of ₦250 million for violating its licence terms by running a digital wallet through its Zap app, according to a report by TechCabal.
Zap, launched in March, allows users to send and receive money, acting like a digital wallet. However, Paystack only holds a “switching and processing” licence, which allows it to process transactions but not to hold or manage customer deposits.
The CBN flagged Zap as operating like a deposit-taking product—a function strictly reserved for licensed banks and microfinance institutions. Running such services without the proper licence violates Nigeria’s financial regulations.
A Paystack spokesperson said the company is working closely with the CBN during the ongoing review and declined to comment further.
The fine is Paystack’s most significant public regulatory penalty since it received CBN approval in 2016. It reflects the increasing scrutiny on fintechs in Nigeria, especially those moving into consumer-focused services.
The development comes amid a separate legal battle between Paystack and Zap Africa, a crypto startup that has accused Paystack of trademark infringement over the name “Zap.”
Although Zap reportedly works in partnership with Titan Trust Bank, which is licensed to hold deposits, the CBN maintains that Paystack’s role in the app’s operation still breaches its regulatory boundaries.
Nigeria’s financial space is tightly regulated, and digital wallets are considered deposit-taking services, making compliance with licence terms critical for all players.
