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

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Standard Bank Group, Africa’s largest lender by assets, is considering taking a stake in Nigerian fintech company OPay ahead of the company’s proposed initial public offering in the United States.

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The South African banking group has held preliminary discussions over a possible investment in the SoftBank-backed payments company, according to Bloomberg, citing people familiar with the matter.

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The talks are still at an early stage and may not result in a transaction.

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The size of the potential investment and the percentage stake being considered have not been disclosed. Standard Bank and OPay have also not confirmed that an agreement is imminent.

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A deal would give Standard Bank exposure to one of Nigeria’s major digital payments platforms as traditional financial institutions increasingly seek opportunities in Africa’s expanding fintech and digital payments market.

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For OPay, an investment by Standard Bank could strengthen its institutional investor base ahead of the proposed US listing and provide additional backing as it seeks to demonstrate the scale and growth potential of its Nigerian business.

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Meanwhile, OPay is preparing for a possible US initial public offering later in 2026, with the company reportedly targeting a valuation of about $4bn.

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Citigroup, Deutsche Bank and JPMorgan Chase have been appointed to work on the proposed share sale, according to earlier reports. The timing, size and eventual valuation of the offering will depend on market conditions and investor demand.

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A $4bn valuation would represent a significant increase from OPay’s last major funding round in 2021, when fintech raised $400m at a valuation of $2bn, experts say.

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The 2021 funding round was led by SoftBank Vision Fund 2, with participation from Sequoia Capital China, Source Code Capital, Redpoint China, Long-Z Capital and 3W Capital.

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An investment by Standard Bank before the proposed IPO could provide OPay with another major institutional shareholder while giving the South African lender an opportunity to participate in any future increase in the fintech’s valuation.

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Founded in 2018, OPay has developed into one of Nigeria’s largest digital financial platforms, offering services including mobile payments, bank transfers, merchant payments, debit cards, savings and agency banking.

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The company has also expanded into markets such as Egypt, Pakistan and Indonesia, but Nigeria remains at the centre of its operations.

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Figures contained in an investment document prepared ahead of the proposed IPO showed that Nigeria accounted for 88.1 per cent of OPay’s revenue in 2025.

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The document also indicated that OPay processed $358bn in gross transaction value during the year, compared with $166.2bn in 2024.

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Its monthly active users increased from 25.1m to 39.3m over the same period, while revenue rose from $205.7m to $536.3m.

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The company also returned to operating profitability in 2025, according to the document, although the figures have not been independently published in audited financial statements by OPay.

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Standard Bank already has a significant presence in Nigeria through Stanbic IBTC Holdings, in which it holds a controlling stake.

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The Nigerian group provides banking, investment, pension and asset management services, while Standard Bank has previously indicated plans to deepen its investment in the country.

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