Standard Bank Group, Africa’s largest lender by assets, is in preliminary discussions to acquire a stake in Nigerian fintech OPay. The potential investment comes as OPay prepares for a planned $4 billion U.S. initial public offering (IPO) expected later in 2026, working with Citigroup, Deutsche Bank, and JPMorgan Chase.
While negotiations are at an early stage and may not result in a transaction, a deal would give Standard Bank direct exposure to Nigeria's rapidly expanding digital payments market. The move aligns with the South African group's strategy to deploy $15.4 billion to capture growth opportunities across key African markets, shifting focus toward fee-based digital transaction income rather than relying entirely on traditional lending.
For investors, this development underscores a broader trend of traditional lenders seeking strategic partnerships or equity stakes in fintech disruptors to secure transaction volumes and technological capabilities. A pre-IPO investment by Standard Bank would secure a strong institutional backer for OPay, anchoring its valuation. The targeted $4 billion public valuation is double the $2 billion valuation OPay secured during its $400 million funding round in 2021.
OPay’s unaudited pre-IPO documents show strong growth: revenue surged from $205.7 million in 2024 to $536.3 million in 2025, returning the platform to operating profitability. Annual gross transaction value doubled to $358 billion, driven by 39.3 million monthly active users. Nigeria remains OPay's primary engine, generating 88.1% of its 2025 revenue.
Key risks for investors to watch include the non-binding nature of the current talks, potential volatility in global IPO markets that could impact final pricing, and the fact that OPay’s recent financial performance has not yet been verified through audited financial statements.
