Paystack Launches Consumer-Focused App Zap, to Revolutionize Bank Transfers

Paystack, a Nigerian financial technology (fintech) company that provides online and offline payment solutions to businesses across Africa, has announced the launch of its consumer-focused app Zap, to revolutionize bank transfers with speed and simplicity.

Unveiled during a live YouTube session, the app is designed for instant, secure, and low-cost bank transfers. Zap aims to set itself apart in Nigeria’s competitive fintech landscape by eliminating reliance on card networks and focusing on direct bank transfers. This strategic move not only lowers transaction costs but also enhances the speed and efficiency of digital payments.

According to Paystack’s Co-founder Shola Akinlade, the company already has a partnership with Titan Trust Bank which has been extended to Zap. He noted that the partnership will ensure that Zap can securely hold deposits and facilitate instant transactions. While International remittances are not the current focus, Zap is ideal for Nigerian visitors who need a seamless way to transfer funds locally.

“Today, we are not targeting the remittance scenario. Our ideal scenario is for people from abroad to come to Nigeria and make transfers using Zap. If you are sending money to Nigeria from abroad, you can wait a couple of minutes. Our priority is immediate delivery”, Shola noted.

Zap is built on Paystack Vault, which currently supports only commercial bank accounts. This means that microfinance banks like Palmpay, Opay, and Moniepoint are not supported currently. Users can also link debit or credit cards from any country to Zap. In a demonstration at the launch, the company’s co-founder Shola carried out a sample by transferring money from his Bank of America card to a Nigerian account which took place instantly.

Getting started with Zap is effortless, thanks to its hassle-free onboarding process. Once set up, users can send money to any Nigerian bank account in seconds, whether it’s paying for a service, splitting bills, or moving funds between accounts.

Users can top up their Zap wallet in two ways:

• Linking a Nigerian bank account through Paystack’s direct debit infrastructure.
• Depositing funds directly into a dedicated Paystack-Titan Trust Bank account.

Notably, customers can only send or deposit money on the app after completing know-your-customer (KYC) checks. Tier-1 users, who verify with only their Bank Verification Number (BVN), can send up to N50,000 daily and maintain a maximum balance of N200,000. For Tier-2 users, the limits rise to N200,000 daily and N500,000 maximum balance. Tier-3 users can send up to N5 million daily and hold up to N100 million in their accounts. With a foundation that already processes millions of transactions daily, Zap prioritizes security and user experience, While the app is currently available in Nigeria, Paystack has ambitious expansion plans, aiming to extend its seamless transfer service across Africa.

As digital payments continue to evolve, Zap is positioned to redefine financial transactions by offering a faster, more affordable, and frictionless alternative to traditional banking apps.

Zap by Paystack: Shaking Up Nigeria’s Digital Payments Market

With the launch of Zap, Paystack has entered direct competition with some of Nigeria’s biggest fintech players, including OPay, PalmPay, Moniepoint, and Kuda. These established platforms have built their dominance on digital wallets, mobile banking, and seamless payment solutions.

However, Zap is positioning itself differently by focusing solely on bank transfers, bypassing card networks and digital wallets to reduce costs and improve transaction speed.

How Zap Stands Out Against the Competition

1. Focus on Instant Bank Transfers Instead of Wallets

Unlike OPay, PalmPay, and Moniepoint, which operate digital wallets where users store funds, Zap does not require users to maintain a separate wallet balance. Instead, it links directly to commercial bank accounts, enabling instant peer-to-peer transfers without additional steps like wallet top-ups or withdrawals.

2. Reduced Transaction Fees by Bypassing Card Networks

Many fintech platforms, including Kuda, offer free bank transfers but rely on card networks for funding and payments. Zap differentiates itself by avoiding these intermediaries, reducing costs for both users and Paystack itself.

3. Leveraging Paystack’s Infrastructure for Stability

One of Zap’s strongest advantages is that it operates on Paystack’s proven infrastructure, which already processes millions of transactions daily for businesses and merchants. This reliability gives it a competitive edge over some newer fintech platforms that may struggle with downtime or delays.

4. Targeting a Different Audience from OPay and PalmPay

While OPay and PalmPay cater to a broad audience, including unbanked and underbanked users, Zap is targeting individuals who already have commercial bank accounts. This means that it doesn’t directly compete with fintechs focused on financial inclusion but rather challenges banks’ sluggish mobile apps by offering a faster and more intuitive alternative.

Zap’s entry into Nigeria’s fintech landscape intensifies the already existing competition. While it may not directly replace OPay, PalmPay, or Kuda, it offers an alternative for users who prioritize speed, security, and direct bank transfers over wallet-based transactions.