Paystack has introduced Zap, its first-ever consumer-focused app, aiming to make bank transfers faster and more seamless. The announcement came from CEO Sola Akinlade during a special launch event on Monday.
Unlike a traditional neobank, Zap allows users to link their existing bank accounts to facilitate quick transactions. However, only traditional banks are supported, meaning users of microfinance institutions like OPay, PalmPay, and Moniepoint cannot connect their accounts.
A New Era for Bank Transfers
Akinlade explained that Zap was designed to ensure bank transfers are completed in under 30 seconds. To achieve this, the app focuses solely on transfers, avoiding additional features that could slow down the process.
Users can link multiple bank accounts within the Zap app, but each user will also receive a Paystack-Titan account. These linked accounts act as a funding source, allowing seamless transfers via direct debit without needing to access separate banking apps.
Notably, the platform also enables foreigners in Nigeria to send money directly to Nigerian accounts. A live demonstration during the launch showed Akinlade successfully transferring funds from a Bank of America account to a Nigerian account.
Competition in the Digital Banking Space
While Zap is positioned as a tool for improving the bank transfer experience, its features place it in competition with neobanks. By allowing users to link existing accounts rather than opening new ones, Paystack may be leveraging Zap as a strategy to attract more users into its ecosystem.
Beyond the Zap announcement, Paystack also shared key performance figures from Q4 2024. The company processed three billion API requests and recorded just nine and a half minutes of downtime throughout the quarter, highlighting its reliability in the payments industry.
Founded in 2016 as a B2B payment gateway, Paystack has now ventured into the B2C market, mirroring the recent shift seen with Moniepoint. With Zap, the company is taking its first steps toward directly serving consumers after nearly a decade.
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[…] Paystack’s recent launch of its subsidiary, Zap, has sparked controversy as Nigerian fintech startup Zap Africa accuses the company of trademark infringement. The dispute has gained traction online, with Zap Africa asserting that it holds legal rights to the name and plans to take action against Paystack. […]