Paystack, a leading Nigerian fintech company owned by Stripe, has launched its consumer-focused app, Zap. This app is designed to make bank transfers faster and easier. It was announced on Monday during a live stream on Paystack’s YouTube page.
Zap is Paystack’s first major foray into consumer payments after nearly a decade of focusing on merchant-based solutions.
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Zap’s core features and benefits
Zap allows users to send money to any Nigerian bank account within 10 to 30 seconds, making it an attractive option for those seeking fast and reliable transactions.
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According to Shola Akinlade, Paystack’s Co-founder and CEO, “Zap is not trying to be a neobank. It is focused on one thing—bank transfers, fast. Making payments as reliable and effortless as possible”.
Users can fund their Zap accounts by linking their Nigerian bank accounts using Paystack’s direct debit infrastructure or depositing money directly into a Paystack-Titan Trust Bank account.
However, only commercial bank accounts can be linked, excluding microfinance banks like OPay, PalmPay, and Moniepoint.
Zap’s pricing includes a deposit fee of N35 for N10,000 and a withdrawal fee of N25, totalling N50 for depositing and withdrawing N10,000. This makes Zap more expensive than some competitors, but Akinlade noted that the pricing is set to evolve.
The app requires users to complete know-your-customer (KYC) checks before sending or depositing money. Tier-1 users can send up to N50,000 daily, while Tier-3 users can send up to N5 million daily.
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Market positioning and user experience
Zap is built on Paystack Vault, leveraging the company’s robust infrastructure, which processes millions of transactions daily. This positions Zap as a reliable option in Nigeria’s competitive fintech market.
Akinlade demonstrated Zap’s capabilities by transferring money from a Bank of America account to a Nigerian account instantly during the launch event.
The app is designed to eliminate reliance on card networks, focusing solely on direct bank transfers to enhance speed and efficiency. With plans to expand across Africa, Zap aims to become a leading solution for consumer payments, offering users faster and more reliable transfers.