Paystack has unveiled Zap, a new consumer-focused app designed to make bank transfers faster and more seamless. The announcement was made by Paystack’s CEO, Sola Akinlade, at a special launch event on Monday. This marks a major shift for the company, which has operated as a business-to-business (B2B) payment platform since its inception in 2016.
What Makes Zap Different?
Unlike traditional neo-banks, Zap is not a standalone banking service. Instead, it allows users to connect their existing bank accounts and conduct quick, hassle-free transfers. The app is designed to streamline the process, ensuring that transactions are completed in under 30 seconds.
However, at launch, Zap will only support traditional bank accounts, meaning users cannot link microfinance banks like OPay, PalmPay, or Moniepoint.
Akinlade emphasized that Zap was created to eliminate the delays and friction often associated with bank transfers, making transactions faster and more efficient.
How Zap Works
• Users can link multiple traditional bank accounts within the Zap app.
• Each user is assigned a Paystack-Titan account, which serves as an intermediary for transfers.
• Linked bank accounts act as funding sources, allowing instant transactions via direct debit without switching to another banking app.
• Foreign nationals in Nigeria can also use Zap to send money to local accounts, as demonstrated during the event when funds were successfully transferred from a Bank of America account to a Nigerian bank in real-time.
Could Zap Compete with Neo-Banks?
Although Zap is positioned as a simple bank transfer tool, its ability to link multiple accounts could make it a strong competitor to neo-banks. Its streamlined transfer experience may also help Paystack attract new customers, drawing users away from traditional banking apps.
Paystack’s Continued Growth
During the launch event, Paystack also shared insights into its B2B payment success, revealing that in Q4 2024, the company:
• Processed three billion API requests.
• Recorded only 9.5 minutes of downtime throughout the entire quarter.
With the introduction of Zap, Paystack joins Moniepoint and other fintech players in expanding into the consumer market, moving beyond its traditional B2B payment solutions.
