fintech nigeria standard-bank opay ipo payments

Standard Bank to invest up to $200m in OPay ahead of NYSE listing

Africa’s largest bank by assets has signed a subscription agreement for a private placement in the Nigerian fintech, capped at 4.99% post-IPO. The deal, expected to close around OPay’s US listing, includes board representation and exploration of distribution partnerships across the continent.

  • Bryan Smith
  • 7 min read

In short

  • Standard Bank’s investment is capped at $200m or 4.99% of OPay post-IPO, with an estimated $185m placement and board seat for Lungisa Fuzile.
  • OPay reported $536.3m revenue and $72.5m net profit for 2025, accelerating to $467.1m revenue and $90.9m net income in H1 2026, with Nigeria driving nearly 90% of revenue.
  • The deal pairs Standard Bank’s African footprint and corporate expertise with OPay’s 50m+ monthly active users and payments/lending platform.
  • OPay targets a ~$4bn valuation for its NYSE listing under ticker OPAY, with plans for a secondary Nigerian Exchange listing.
  • Partnership discussions target digital banking, merchant acquiring, remittances and product distribution across multiple African markets.

Standard Bank’s strategic placement in OPay

Standard Bank Group has signed a subscription agreement to acquire shares in OPay Digital Services through a private placement concurrent with the Nigerian fintech’s proposed initial public offering on the New York Stock Exchange. The investment, made via subsidiary Stanbic Africa Holdings, is capped at the lowest of $200 million, 0.98% of the group’s qualifying regulatory capital excluding unappropriated profit, or the value required for a 4.99% stake in OPay post-offering at the IPO price.

The agreement was signed on 26 August 2026 and publicly disclosed in October following OPay’s Form F-1 filing with the US Securities and Exchange Commission on 9 October 2026. According to Bloomberg, the placement is expected to total approximately $185 million. The investment is conditional on the IPO completing and receipt of regulatory approvals. Standard Bank has also been named one of the underwriters for the offering alongside Citigroup, Deutsche Bank and China International Capital Corporation.

Lungisa Fuzile, CEO of Standard Bank’s Africa Regions business and former CEO of Standard Bank South Africa, will join OPay’s board as a non-executive director upon closing of the placement, provided the bank retains at least a 2.5% stake. The shares will be subject to a 12-month lock-up with limited exceptions.

OPay’s rapid growth and path to profitability

OPay has scaled significantly since its 2018 launch in Nigeria as a payments platform backed by Chinese investors, including billionaire Zhou Yahui. The company expanded into lending, remittances and merchant services, operating primarily in Nigeria with smaller presences in Indonesia, Egypt and Pakistan.

Nigeria accounted for 88.1% of OPay’s 2025 revenue and 89.5% in the first half of 2026. Gross transaction value processed by the platform more than doubled to $358 billion in 2025 from $166.2 billion in 2024, according to the prospectus. Monthly active users grew 57% to 39.3 million in 2025, while daily active users reached 22.7 million in the fourth quarter.

Revenue increased 161% to $536.3 million in 2025 from $205.7 million in 2024. The company swung from a net loss of $50.8 million to a net profit of $72.5 million. Performance accelerated in the first six months of 2026, with revenue rising 136.5% to $467.1 million and net income climbing to $90.9 million from $21.7 million in the comparable prior period.

Lending has become a major revenue driver, surpassing payments in the first half of 2026. New loans originated in Nigeria rose sharply, though provisions for credit losses also increased to $123.6 million in the period, highlighting risks in the high-interest consumer credit segment. As of 31 July 2026, OPay reported 50.1 million monthly active users and 26.8 million daily active users.

The company is targeting a valuation of around $4 billion for the IPO, with pricing expected around mid-November 2026. It also plans a secondary listing on the Nigerian Exchange following the NYSE debut.

Strategic fit for Standard Bank’s digital and pan-African ambitions

The investment aligns with Standard Bank’s strategy to deepen its digital capabilities and expand reach across its footprint in 21 African markets. Sim Tshabalala, CEO of Standard Bank Group, stated that the bank’s expertise and physical presence complement OPay’s digital platform and merchant ecosystem, with potential to expand financial access and support cross-border commerce.

Beyond the equity stake, the parties intend to explore collaborations in digital banking, merchant acquiring, payments, lending, remittances and co-development of new products. Selected Standard Bank products and services could be distributed through OPay’s consumer and merchant platforms in various African markets. These initiatives remain subject to definitive agreements and regulatory approvals.

This move follows Standard Bank’s earlier reported talks for a pre-IPO stake and builds on its Capital Markets Day strategy to accelerate digital transformation. It also reflects a maturing African private markets environment where traditional banks partner with or invest in high-growth fintechs to access technology and younger customer segments.

Context within Africa’s fintech funding and unicorn landscape

OPay’s last major funding was a $400 million Series C in 2021 led by SoftBank Vision Fund 2 at a $2 billion valuation. SoftBank entities currently hold a 6.6% stake pre-offering. The IPO comes at a time when African fintech funding has been selective, with investors favouring proven operators showing clear paths to profitability.

Comparable deals include Flutterwave’s Series E in 2026 led by Circle Ventures at over $3.2 billion valuation, and Moniepoint’s $110 million first close of Series C in 2024. Nigeria remains the dominant market, but cross-border ambitions are growing, as seen in Wave Mobile Money’s debt raise and Tyme Group’s Series D.

Standard Bank’s involvement, including its role as underwriter, signals confidence in OPay’s model amid regulatory scrutiny of fintechs in Nigeria and global caution around tech listings. However, challenges persist, including foreign exchange volatility, credit risk in lending portfolios and competition from both local banks and other digital players.

Metric 2024 2025 H1 2026
Revenue $205.7m $536.3m $467.1m
Net income (loss) ($50.8m) $72.5m $90.9m
Gross transaction value $166.2bn $358bn $339.1bn (H1)
Monthly active users 25.1m (2025 start) 39.3m 50.1m (July)

Sources: OPay Form F-1 via Bloomberg, Reuters, company disclosures. Figures are approximate and subject to final audit adjustments in the prospectus.

What to watch next

The final IPO pricing and valuation will set a benchmark for African fintechs in international markets. Execution of commercial partnerships between Standard Bank and OPay, particularly in payments and cross-border services, could create tangible revenue opportunities beyond Nigeria. Regulatory approvals in both the US and key African jurisdictions will determine timing, while OPay’s ability to manage credit losses amid high interest rates in Nigeria remains a key operational focus for investors.

Sources

Researched with AI from public sources and edited by the Africa Markets team before publication. It is information, not advice. See our Disclosures.

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