CBN Fines Paystack $250 Million for Operating Consumer Product ‘Zap’ Beyond Regulatory Scope

The Central Bank of Nigeria (CBN) has imposed a significant fine on Paystack, a prominent Nigerian fintech company, for allegedly operating its consumer product, Zap by Paystack, in violation of its regulatory license. The CBN claims that Zap functions as a deposit-taking service, an activity reserved for institutions with specific financial licenses such as microfinance or banking licenses.