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    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»Acquisitions»Why Paystack Chose Stability Over Sentiment as It Outgrew Its Founders
    Paystack Co-founders

    Why Paystack Chose Stability Over Sentiment as It Outgrew Its Founders

    0
    By Smart Megwai on January 21, 2026 Acquisitions, Brands, Business, Fintech, Internet, Leadership, Online Safety, Payments, Small Businesses, Startups

    Ten years ago, two friends in a Lagos apartment set out to fix the troubled state of African commerce. Yesterday, only one of them, Shola Akinlade, announced a major change for their company, Paystack.

    As Paystack turns 10, it has launched a new parent company called The Stack Group (TSG). This change marks the end of its startup phase and the beginning of a new corporate era. It will now house several brands, just a week after acquiring Ladder Microfinance Bank.

    While the media highlights the impressive growth in payment volumes and the new banking license, many discussions on Nigerian tech Twitter (X) focus on the absence of one of its co-founders, Ezra Olubi, and its consequences.

    Paystack is evolving beyond a simple payment gateway; it has transformed into a larger powerhouse. The newly established The Stack Group encompasses four distinct and impactful brands:

    • Paystack: The classic payment processor we all know (merchant payments)
    • Zap: A consumer-facing payment product.
    • Paystack Microfinance Bank: The result of the Ladder MFB acquisition.
    • TSG Labs: A venture studio to cook up new technologies (think R&D).

    Since Stripe acquired Paystack in 2020 for $200 million, the company has experienced remarkable growth. Payment volume has surged 12 times, underscoring its robust market presence. Now operating in five key countries (Nigeria, Ghana, Kenya, South Africa, and Côte d’Ivoire), Paystack effectively covers 46% of Africa’s GDP. Furthermore, the company has achieved profitability, standing out in a tech landscape where rampant spending is often glorified.

    Acquiring Ladder Microfinance Bank is crucial. Being a payment processor is good, but being a bank gives much more power. With this acquisition, Paystack can now hold funds, lend money, and must follow stricter rules from the Central Bank of Nigeria (CBN).

    Another significant point of discussion is the absence of Ezra Olubi, the co-founder and former Chief Technology Officer. He was a key figure in Paystack’s engineering culture. However, in November 2025, he was let go following allegations of misconduct and controversial tweets that clashed with Paystack’s image.

    I didn’t see anything wrong in that Paystack video sha.

    There are consequences to things and I don’t think the team needs “him” as the face anymore 🫩.

    — Sameerah is saying FREE PALESTINE 🇵🇸🍉 (@Adedotttttttt) January 21, 2026

    Reactions on X are mixed. Some users miss his technical talent, while others remind everyone of the consequences of past actions. They emphasise that what you post online can affect your career, even years later.

    @paystack you people just cut off a co-founder like he was nothing

    I hope he sue the hell out of y’all.

    So you cut him off based on social media dragging, he was never arrested not found guilty of any crime by any court!

    What’s sort of prejudice is that. Shame

    — Oluwasegun 🇳🇬 (@stqinless_) January 21, 2026

    The main lesson from TSG’s launch is that as companies mature, they cannot maintain the same level of casualness they had as startups. When a company becomes a significant institution, it must prioritise stability and a strong reputation.

    Shola Akinlade and the board made these moves to secure the trust of regulators and partners. They cannot afford to have any unpredictable behaviour at the top of a bank. The launch of TSG shows that Paystack has matured. It separates its emotional past from its strategic future. TSG Labs focuses on innovation, Paystack MFB ensures regulatory compliance, and the restructuring aims for growth.

    Overall, Paystack’s transformation into The Stack Group is a big win for the African tech scene. It shows that building profitable and scalable multinational companies is possible. However, it also serves as a warning for new founders and internet users. As one rises in business, the risks and expectations grow. The freedom to say anything online ends when you ask people to trust you with their money.

    Ezra played a crucial role, but now the company is moving forward without him. In the business world, that’s not personal; it’s just how things work.

    Related

    Ezra Olubi Ladder Microfinance Bank Paystack Paystack Microfinance Bank Shola Akinlade Stripe The Stack Group TSG Labs Zap by Paystack
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    Smart Megwai
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    Smart is a technology journalist covering innovation, digital culture, and the business of emerging tech. His reporting for Innovation Village explores how technology shapes everyday life in Africa and beyond.

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