Standard Bank eyes stake in OPay ahead of planned $4bn US IPO

South Africa’s Standard Bank Group is in discussions to acquire a stake in Nigerian fintech giant OPay Digital Services ahead of the company’s planned initial public offering (IPO) in the United States, Bloomberg has reported.

People familiar with the matter said the proposed investment could see Africa’s largest bank by assets take a stake in OPay before the fintech proceeds with its planned US listing.

However, no agreement has been reached and there is no certainty that the transaction will be concluded. The value of the proposed investment and the size of the stake being considered are also unknown.

OPay declined to comment on the reported discussions, while Standard Bank said it does not comment on market speculation.

The potential investment comes as OPay prepares for a proposed US IPO that could value the company at about $4 billion. Citigroup, Deutsche Bank and JPMorgan Chase have reportedly been appointed to manage the planned offering, which is expected later this year.

OPay’s proposed listing comes after significant improvements in its financial performance. The fintech reported a net profit of $72.47 million in 2025, reversing a $50.98 million net loss recorded in 2024.

Revenue surged 161 per cent to $536.25 million from $205.73 million, supported by increased transaction volumes, user growth and stronger lending activity.

The company’s gross transaction value more than doubled to $358 billion in 2025, compared with $166.2 billion a year earlier.

Its monthly active user base also increased 57 per cent to 39.3 million from 25.1 million, while daily active users in the fourth quarter rose 50 per cent to 22.7 million.

Despite its expansion into other markets, Nigeria remains OPay’s dominant market, accounting for 88.1 per cent of its revenue in 2025. Indonesia contributed 9.9 per cent, Egypt 1.6 per cent and other markets 0.4 per cent.

US listing sparks Nigerian market debate

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OPay’s decision to pursue a US listing has generated debate among Nigerian investors and capital-market stakeholders, particularly because Nigeria remains the company’s principal market.

The issue gained prominence after Nigerian Exchange Group CEO, Temi Popoola, urged President Bola Tinubu to support policies that would encourage major companies, particularly high-growth fintech firms, to list on the Nigerian Exchange.

Market analysts said a successful OPay listing could provide significant visibility for Africa’s fintech sector and attract international capital.

They noted, however, that a US listing could mean Nigerian investors have limited direct access to the company’s equity unless mechanisms are established to facilitate local participation.

Analysts also said a pre-IPO investment by Standard Bank could strengthen OPay’s institutional backing and potentially provide strategic value as the fintech prepares for a major international capital-market debut.

Expanding digital finance platform

OPay, backed by global investors including SoftBank and Sequoia Capital, has developed into one of Africa’s leading digital financial platforms, providing payment, savings, credit and other services.

The company operates across Nigeria, Indonesia, Egypt and Pakistan, with its Nigerian operations supported by licences as a Mobile Money Operator and Microfinance Bank.

OPay also reported a first-attempt transaction success rate of more than 99 per cent in the fourth quarter of 2025, highlighting the scale of its payments infrastructure.