In today’s digital economy, the role of payment gateways cannot be overstated. Payment gateways act as the backbone of e-commerce and digital transactions, enabling businesses and individuals to send and receive money securely and efficiently. These platforms bridge the gap between buyers and sellers, facilitating seamless transactions through various methods such as cards, bank transfers, USSD, and mobile wallets.
In Nigeria, the rapid growth of e-commerce and fintech has made payment gateways indispensable. With increasing smartphone penetration and internet adoption, businesses are leveraging these solutions to tap into the digital-first consumer market. From small businesses to large corporations, payment gateways provide a critical infrastructure for processing payments locally and internationally. Moreover, their features, such as fraud prevention, recurring billing, and API integrations, have helped businesses optimize operations and improve customer satisfaction.
This article highlights seven top payment gateways in Nigeria, detailing their origins, features, and how they cater to diverse business needs in the country’s dynamic digital landscape.
1. Paystack
- Founded: 2015, by Shola Akinlade and Ezra Olubi.
- Company: Acquired by Stripe in 2020, Paystack is a global leader in digital payments.
- Features: A developer-friendly API, seamless integration, and support for over 60 countries. Paystack processes payments via cards, bank transfers, USSD, and QR codes.
- Use Case: Ideal for businesses targeting both local and international customers.
- Fees: Local transactions cost 1.5% + ₦100 (capped at ₦2,500), while international transactions incur 3.9% fees.
2. Flutterwave
- Founded: 2016, by Olugbenga Agboola and Iyinoluwa Aboyeji.
- Company: Known for its Rave product, Flutterwave has raised over $250 million in funding.
- Features: Accepts payments through cards, mobile wallets, USSD, and bank accounts. It offers payment links and pages for businesses without websites.
- Use Case: Supports small and large businesses with a focus on mobile-first users.
- Fees: Local transactions cost 1.4%, while international transactions are charged at 3.8%.
3. Interswitch WebPay
- Founded: 2002, as part of the pioneering fintech company Interswitch.
- Features: Supports local and international payments via cards, bank transfers, and mobile wallets. The platform includes APIs for seamless integration and recurring billing options.
- Use Case: Widely used by banks, government agencies, and e-commerce platforms like WooCommerce.
- Fees: 1.5% per local transaction (capped at ₦2,000), with international transactions charged at 3.5%.
4. Remita
- Founded: 2006, by SystemSpecs.
- Features: Offers bulk payment options, invoice generation, and supports USSD, cards, and bank transfers. Commonly used for government transactions and payroll systems.
- Use Case: Best suited for institutions requiring detailed financial reporting and bulk payments.
- Fees: 2% per transaction, capped at ₦2,500; international payments attract an additional 2%.
5. Monnify
- Founded: 2019, by TeamApt, now known as Moniepoint
- Features: Specializes in bank transfer payments, offering virtual accounts, automated reconciliation, and flexible APIs.
- Use Case: Suitable for businesses handling large volumes of bank transfers and recurring payments.
- Fees: 1% per transaction (capped at ₦250).
6. OPay
- Founded: 2018, by Opera Software.
- Features: An all-in-one mobile platform offering secure payment processing, two-factor authentication, and automatic chargeback prevention.
- Use Case: Ideal for businesses requiring robust fraud protection and mobile-friendly integrations.
- Fees: Offers competitive rates for local transactions with a strong focus on user security.
7. eTranzact
Founded: 2003, by eTranzact International PLC.
Features: A versatile payment gateway offering multi-channel payment options, including cards, USSD, mobile wallets, bank transfers, and POS terminals. It also supports utility bill payments and merchant integration for e-commerce platforms.
Use Case: Best for government institutions, utility companies, and businesses needing secure and reliable payment solutions with high transaction volumes.
Fees: Local transactions: 1.5%; international transactions: 4%
These payment gateways provide diverse features to cater to Nigeria’s fast-growing digital economy. Businesses should choose based on their scale, customer base, and transaction needs. Whether targeting local users or international clients, these gateways offer secure and flexible solutions to support business growth.
