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Paystack Enters Consumer Payments with Zap, a Fast Money Transfer App

Omolade Oyelaja by Omolade Oyelaja
March 26, 2025
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Source: Paystack

Paystack, Nigeria’s leading online payment processor, is making a bold move into consumer payments with Zap, its new money transfer app. This marks a significant shift for the company, which has long been known for its business-focused payment solutions.

Nine years after launching to simplify online payments, Paystack’s success led to a $200 million acquisition by Stripe. Now, the company is betting on seamless money transfers to fuel its next growth phase. With Zap, users can send money to any Nigerian bank account in under 10 seconds—a game-changer in the fast-paced world of digital finance.

How Zap Works: Speed and Simplicity

Zap is designed for quick, hassle-free transactions. Users can fund their Zap accounts in two ways:

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  • Linking a Nigerian commercial bank account via Paystack’s direct debit infrastructure.
  • Depositing money into a Paystack-Titan Trust Bank account.

Currently, only commercial banks are supported, meaning neobank users from platforms like OPay, PalmPay, and Moniepoint can’t link their accounts.

Zap charges a ₦35 fee to deposit ₦10,000 via a linked account and an additional ₦25 fee to withdraw ₦9,900, totaling ₦50 per transaction cycle. While this makes Zap pricier than alternatives like OPay and PalmPay, Paystack CEO Shola Akinlade hints that pricing will evolve over time.

Global Payment Capabilities

One standout feature of Zap is the ability to link debit or credit cards from any country. Akinlade demonstrated this by transferring money from his Bank of America card to a Nigerian account instantly. However, he clarifies that Zap is not yet targeting remittances but is instead designed for Nigerians abroad who need to make transfers while visiting the country.

Security and KYC Requirements

To use Zap, users must complete Know-Your-Customer (KYC) checks.

  • Tier 1 users (BVN verification) can send up to ₦50,000 daily and hold a maximum balance of ₦200,000.
  • Tier 2 users (selfie, address, and NIN verification) can send ₦200,000 daily with a ₦500,000 balance limit.
  • Tier 3 users (full address verification) can send up to ₦5 million daily and hold up to ₦100 million.

Why Bank Transfers? Why Now?

In 2023, bank transfers made up over 58% of all transactions Paystack processed—double the previous year’s share. This surge in direct transfers led the company to develop products like Paystack Terminal and integrations with fintech partners such as OPay.

By launching Zap, Paystack is extending its control over the payment ecosystem. If a Chowdeck user, for example, transfers money via Zap to a Chowdeck Paystack-Titan account, the funds remain within Paystack’s network, ensuring speed and reliability.

Competing in Nigeria’s Crowded Fintech Market

Zap places Paystack in direct competition with fintech giants like PalmPay, Kuda, OPay, and Moniepoint. These platforms gained millions of users during Nigeria’s cash crunch in 2023 by offering fast and low-cost transfers.

Paystack’s advantage lies in its infrastructure. With 98% of Zap transactions completing within 10 seconds, the company promises a superior transfer experience. Akinlade emphasizes that Zap is for users who value speed, reliability, and a seamless experience.

The Road Ahead for Zap

To thrive in Nigeria’s competitive market, Paystack will need to adjust its pricing. While its user-friendly design and fast transactions stand out, affordability remains a key factor for millions of Nigerians facing economic challenges.

Still, Akinlade remains optimistic: “Zap will get even better. We want Nigeria’s payment experience to be as elegant as anywhere else in the world.”

With Zap, Paystack is taking a major step toward consumer-focused financial services, setting the stage for what could be its next big breakthrough in fintech.

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