Before 2012, Nigeria saw a heavy reliance on cash transactions due to limited access to ATMs and intricate traditional banking systems. This led the Central Bank of Nigeria to introduce the cashless policy and led to the creation of the NIP in 2011.

Since its inception, the NIP’s transaction value has exploded, growing from ?3.9 trillion in 2012 to roughly N38.7 trillion by January 2023, an annual growth rate of 41.6%. This significant increase underscores the potential of online payments in Nigeria’s online commerce sector, which even surpassed the US in real-time payments volume in 2021. This has not only fuelled the growth of online businesses but also facilitated the development of additional payment infrastructures like payment gateways. These systems improve the efficiency of transactions through various emerging channels like card payments, bank transfers, Point of Sale (PoS) payments, and USSD.

What does a payment gateway refer to?

A payment gateway is a service enabling the processing of electronic payments between businesses and their customers. It serves as an interface allowing payment through various methods and channels. Upon making a transaction, customers are directed to the payment gateway’s site to input their personal and card details. Once verified, these details are sent back to the business’s site to finalize the transaction. Payment gateways cater to various business types, from eCommerce sites and large corporations like schools and hospitals to smaller entities like SMEs and online businesses on social media. Traditional physical stores now offer online payment options as well. These gateways partner with financial institutions like banks or credit card providers to facilitate secure and efficient fund transfers between sellers and buyers.

This article will guide you through the key factors you need to consider when selecting a payment gateway, and it will also provide a list of leading payment gateways available in Nigeria. These factors include the transaction fee, accepted payment methods or channels, transaction success rate, payment settlement duration, onboarding process, and the user interface’s ease of use.

Paystack

Paystack, a leading payment platform in Nigeria, was co-founded by Shola Akinlade and Ezra Olubi. It has now become part of the global payments giant, Stripe. Renowned for its simplicity and ease of integration, Paystack offers tailored solutions that cater to businesses of all sizes – from startups to established corporations. Known for its diverse range of payment options and robust security protocols, Paystack has earned a reputation as a trusted and respected player within the Nigerian market. The platform’s reach extends beyond Nigeria, with operations across more than four African countries. In 2018, Paystack made headlines when it announced that its users were processing over ?10 billion in transactions each month, signaling the platform’s significant impact on the region’s digital economy.

One of the distinguishing features of Paystack is its ability to accept payments even without a website. This is made possible through their innovative starter account, custom payment pages, and the provision of digital invoices. Furthermore, Paystack ensures swift and efficient fund transfers, with money received on your website typically transferred to your account the very next day.

Rave by Flutterwave

Flutterwave, an African fintech pioneer, provides advanced payment solutions to over a million businesses, including renowned clients like Uber, MTN, and PiggyVest. The company has significantly influenced the payment gateway sector, transforming how businesses manage their finances with a variety of tools for accepting diverse payment methods and optimizing financial operations. In 2021 Flutterwave demonstrated exceptional growth and success. This milestone was reached through a substantial Series C funding round that raised $170 million. Since then, the company continues providing dependable and innovative financial services worldwide.

Among Flutterwave’s notable offerings is the Rave wallet, a digital wallet with unique features such as geolocation, which allows users to find global merchants accepting Rave payments. Additionally, the Rave wallet’s mapping feature aids users in navigating new locations while traveling. These capabilities make Flutterwave an essential resource in the modern digital economy of Nigeria.

RexPay by Accelerex

RexPay, owned by the prominent African fintech company Accelerex, is an inclusive online payment gateway for businesses, offering real-time payment processing from clients. The platform supports numerous payment methods like card payments, account transfers, USSD, and QR Code, and is compatible with major payment systems and card brands such as Verve, Mastercard, and VISA in Nigeria. RexPay’s seamless integration promises a hassle-free payment experience for businesses and their clients. The user-friendly RexPay portal allows businesses to manage all transactions, refunds, settlements, disputes, etc., in real time, and generate varied reports and analytics for performance tracking and insights. RexPay also employs sophisticated technology to identify and prevent fraud, ensuring regulatory compliance.

RexPay also offers businesses the feature to generate and disseminate payment links through email, SMS, and social media, facilitating payments without necessitating a website or app. Businesses can conveniently register on RexPay and begin accepting payments from their customers. Account creation on RexPay is free, and no recurring charges apply to customers.

Interswitch WebPAY

Interswitch WebPAY, a branch of the Interswitch Group, offers a secure and straightforward way for businesses to handle online transactions. Thanks to its advanced technology and extensive network, it has become a go-to payment gateway for both e-commerce and brick-and-mortar businesses. Globally recognized as a dependable payment consolidator, it allows integration with WordPress websites via their plugin, offering consumers the flexibility to pay for goods and services using either cards or payment tokens.

Nevertheless, the high initial setup cost is seen as a downside. Starting with Interswitch incurs a one-time fee of ?150,000 plus a 1.5% transaction fee. Transactions over ?133,333 are charged a flat fee of ?2,000, whereas those below this threshold continue to incur the standard 1.5% fee.

Monnify by Moniepoint

Monnify, a notable product from the Nigerian fintech startup Moniepoint, is a reliable payment platform used by established businesses like Cowrywise, Thrive Agric, and Bankly. It delivers a comprehensive digital payment solution that guarantees secure, uncomplicated, and convenient transactions. It features pre-built platforms, including web and mobile SDKs, and thoroughly explained APIs that allow developers to tailor their projects and integrate Monnify into their applications.

Monnify provides customers with the flexibility to choose their preferred settlement methods, with transactions typically processed within a day. However, daily, bi-daily, or instant settlements are also available. At present, Monnify exclusively serves Nigerian-based clients, offering a checkout option and virtual accounts. It is renowned for its affordability, providing the industry’s most competitive rates, and does not levy fees for account creation or upkeep.

Remita

Remita, a product of SystemSpecs, is a versatile payment platform predominantly utilized by government bodies, educational establishments, and businesses in Nigeria to simplify their financial dealings. It’s extensively used by diverse sectors like eCommerce platforms, insurance firms, utility providers, religious groups, and associations for fee collection. Remita offers a variety of payment options such as USSD codes, debit/credit cards, PoS terminals, and bank transfers. It gives users a comprehensive view of their financial standing, thereby improving their financial administration.

A transaction fee of 2% is applied, with a maximum limit of ??2,500, plus an additional 2% fee for international cards. Remita is compatible with numerous eCommerce platforms including WooCommerce, Wix, Magento, and OpenCart. All payments are received on the same day, with the exception of card transactions which are settled the following day.

Squad by GT Bank

Squad, a pioneering tool in African digital payments, was launched in 2022 by HabariPay, a part of Guaranty Trust Holding Company. It caters to both small and large businesses, providing the flexibility and ease necessary for their success. This tool permits users to transform their smartphones into powerful point-of-sale devices, enabling them to conduct their businesses online. Squad offers quick and secure payments via USSD, virtual accounts, and shareable links. Additionally, it gives developers a unique platform, allowing them to create seamless integration opportunities and exceptional payment experiences for their customers.

Squad’s setup is free of cost, with varying transaction fees for different payment methods. For example, transactions through virtual accounts have a 0.1% fee, while USSD and payment links incur a 1% fee. International payments made through a payment link carry a 3.5% fee per transaction.

DusuPay

Dusupay, a trusted payment platform in Nigeria and Africa in general, is recognized for its safe, prompt, and efficient business-specific infrastructure. It offers free setup, making it attractive for merchants serving up to 5,000 clients. Moreover, it accepts major credit cards such as Visa, Mastercard, and Verve. Dusupay caters to diverse business needs and customer preferences by providing single and recurring payment options. The single payment process is straightforward, resembling typical gateways, thus easy for beginners. The recurring payment option, on the other hand, takes advantage of Dusupay’s proprietary technology for a seamless user experience.

Distinctively, Dusupay’s affordable and transparent cost structure differentiates it from its rivals, making it a sensible choice for businesses regardless of their size. This pricing approach, coupled with its reliable services, has won the confidence of numerous large-scale businesses with B2B customers, further solidifying Dusupay’s position as a leading payment provider in Nigeria.

Opay

OPay is a multifunctional mobile platform that offers a range of services beyond just mobile transactions. This all-in-one app includes services like food delivery and ride-hailing, catering to a broad spectrum of user needs. It’s particularly useful for those looking for an integrated solution to simplify their daily tasks. Recently launched in Nigeria, OPay offers a payment gateway that allows developers to easily process payments on their websites or apps. Its notable features include robust fraud protection, two-factor authentication for enhanced security, automatic chargeback prevention to safeguard businesses, and adherence to HIPAA regulations.

Serving a variety of businesses, OPay has made its mark across different sectors. It’s adopted by a wide range of businesses, from e-commerce websites requiring a reliable payment system, to restaurants seeking to optimize their order process, to digital agencies needing a secure payment gateway, and online retailers wishing to offer their customers a smooth transaction experience.