Paystack to shut down Allawee accounts after quiet acquisition

Paystack has acquired the Nigerian card-issuing fintech, Allawee. This acquisition, which took place in 2025 but was not publicly announced, means that Allawee is now preparing to discontinue its account and card services as its technology is integrated into Paystack’s expanding financial services.

Customers have been notified via email that all business and personal account services will cease on December 1, 2026. After this deadline, any payments made to Allawee account numbers will fail, and Allawee cards will no longer function, regardless of their expiry dates.

Customers are advised to withdraw their balances by November 30, update their banking details for payments, and replace Allawee card information associated with subscriptions.

What happens to Allawee’s customers

The transition from Allawee to new services is significant and won’t simply involve transferring existing accounts. Businesses that used Allawee will now be directed to Paystack Microfinance Bank, while individual customers will move to Zap, Paystack’s consumer transfer app. This means customers must set up new accounts because their previous Allawee account numbers, transaction histories, balances, and verification details will not be transferred.

Allawee has assured customers that their money will remain safe and won’t expire. However, if someone leaves funds in an Allawee account beyond the deadline, they will need to reach out to Paystack MFB for a manual payout, which may take longer than expected. Customers using Allawee cards for subscriptions will also need to update their payment details before the deadline.

Paystack

Paystack and Allawee have not commented on the acquisition. Allawee was founded in 2022 by Ikenna Enenwali and Oreofe Olurin, initially launching as a credit-card lender before evolving to provide technology that enables fintechs and businesses to issue cards more swiftly.

By 2025, Allawee was supplying card infrastructure to companies like PiggyVest, Nomba, and Carbon, significantly speeding up the launch of card programs.

In addition, Allawee offered business accounts through Providus Bank and introduced a Mastercard credit card for federal civil servants and NYSC members. Now, this card infrastructure has become part of Paystack, which benefits from the acquisition by gaining technology that would have taken years to develop.

Paystack is not alone in buying its way into new products

Allawee’s acquisition highlights a trend among Nigerian fintech companies that are increasingly buying other businesses to grow beyond their original focus.

For instance, Paystack made headlines this year by acquiring Ladder Microfinance Bank in January, which allowed it to obtain a banking license. It also merged Brass, a business banking startup it helped save in 2024, into its operations.

Similarly, Flutterwave acquired Mono, an open banking company, to enhance its capabilities for services beyond just payment processing.

This trend reflects a broader change in Nigeria’s fintech scene. During the funding boom from 2020 to 2022, many companies built overlapping products in payments, banking, and financial infrastructure. With funding now more limited and regulations stricter, buying existing technology and licenses has become a more efficient way to grow rather than building everything from the ground up.

For Paystack, acquiring Allawee is more than just shutting down another fintech brand; it’s about integrating new infrastructure as they expand their offerings from payments to a wider range of financial services.

Also read: Flutterwave acquires Mono in strategic push for open banking