Best Online Payment Gateways In Nigeria For E-Commerce Transactions
Conducting cashless transactions in Nigeria is simpler because of the presence of online payment gateways. With these gateways, individuals can make payments between different banks, visiting none of their branches. However, with many online payment gateways now in Nigeria, you need to choose a gateway that will ensure you have seamless transactions. You’ll have to make this choice yourself, as you’ll see some of the best gateway payment systems in the country and how they function. What Are Online Payment Gateways? A payment gateway is a standard system that makes it possible for individuals to process payments using debit/credit cards. It follows a standard procedure as it encrypts confidential data and makes the needed transfer between a vendor, bank, and customer. This gateway functions as a payment portal and the bank as a payment processor. Hence, the payment gateway creates communion between the three participants of the payment process. This way, it ensures every transaction runs safely by applying various anti-fraud tools and acting under all stipulated compliances. When you consider it technically, all payment gateways sit a layer above the payment processor. It draws its data from the user and redirects the payment to the processor in an understandable format depending on the chosen payment format. How To Choose a Payment Gateway Every online payment gateway has certain specifics or areas wherein they perform better than others. With this in mind, your choice of a system must synchronize with your goals. So, before you choose any gateway, consider these specifics that include: #1. Price Structure Because of the inclusion of diverse financial organizations, processing payments is not a straightforward process. Like any service, a payment gateway demands a fee for using third-party tools to process and authorize every form of transaction. Every party to this process pays certain processing charges fees. The cost of charge always depends on the type of product/service and the location as well. Each payment solution has its terms and conditions. After setting up an account, do well to read up their pricing to get a grapple of their offerings. #2. Identify Merchant Account Options A merchant account is simply an agreement between a merchant and an acquiring bank, by which a merchant gives the bank permission to process their transactions. Furthermore, a merchant duly abides by the operational regulations of all card processing established by credit card companies. You can open a merchant account through a bank or payment gateway providers. They usually offer merchant accounts as a part of their overall service with payment processors an added tool. If you already have a merchant account, consider what that provider offers. Otherwise, it’s better to work with a provider that offers a merchant account from the start. #3. Ensure Vendor Adopts Multiple Currencies and Payment Processes According to Statista, the majority of shoppers use credit cards compared to e-payment platforms and debit cards. Despite these numbers, mobile payments generate more revenue to business each year, globally gaining about $930 billion. In eCommerce, you conduct mobile transactions using e-wallets. Applications such as Apple Pay, PayPal, and Google Pay store your credit card information or store your money on their own. So, make sure your payment gateway supports all the necessary payment methods that are popular in your specific industry, region, or country. #4. Product Type is Permissible Products are divided into digital and physical products. Many payment solution providers offer their services both for physical and digital products. However, it’s not rare for only one type of product to be available in a system. Hence, before completing your subscription, make sure your product is permissible. Best Online Payment Gateways In Nigeria For E-Commerce Transactions Following all conversations regarding online payment gateways and the indicators you must track before you choose a gateway, you now need to learn some of the best payment gateways in Nigeria. They include: #1. Flutterwave Flutterwave is an African-based Fintech company bundled with the responsibility of providing payment infrastructure for global merchants and payment service providers across the continent. With an efficient system, they rank as one of the top online payment gateways in Nigeria and Africa. Recently, Flutterwave brokered a deal with major online payment gateway Paypal and this partnership led to the two platforms sharing some connection. In pricing, Flutterwave charges a 1.4% processing fee per local transaction. It also set processing fees at N2,000 but unlike Paystack, there’s no additional NGN 100 fee. For international transactions, Flutterwave charges a 3.9% (+ NGN 100) and a 3.8% processing fee respectively. #2. Dusupay DusuPay provides a very secure, efficient, simple, and fast infrastructure to process payments for businesses globally in Africa. Because of their credibility, multi-million dollar companies trust them to process all their payments in Africa. They have an API that’s easy to use, as you can set it up in minutes. With comprehensive payment solutions for Africa, expanding their boundaries and collecting payments from different paths of the world is part of their core function. Dusupay charges 4.9% for all Visa and MasterCard card collections and a 3.9% collection on all verve cards and instant bank wires. They have two plans which include the standard and enterprise plan. #3. Paystack Paystack is one of the fastest and simplest ways to accept online payments in Nigeria. This platform automatically routes payments through the most optimal channels, boasting the highest transaction success rates in the market. Paystack’s combination of automated and manual fraud systems protects its users from fraudulent transactions and associated chargeback claims. As a user, you get detailed reporting, alerts, and exports, so you and your team are always on top of business. Paystack charges 1.5% + N100 for all payments made through their gateway. And the duration of every transaction on this platform lasts a maximum of 24 hours, i.e. if a customer makes a payment on Monday, you will receive an alert on Tuesday. #4. CashEnvoy CashEnvoy is a payment service that allows businesses to receive payment online. The payment platform began operations in November