Payment in Nigeria has taken a different turn from a decade ago. If you’re a business owner looking for the best payment processor in Nigeria, look no further than this article.
Today, conducting cashless transactions in Nigeria is simpler because of the presence of online payment gateways. With these gateways, your customers can make payments between different online stores, without the hassle of going to the bank..
With many online payment gateways in Nigeria, you need to choose a gateway that will ensure 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.
In 2021, Flutterwave achieved unicorn status when it reached a valuation of $1Billion. Flutterwave has a global reach, accepting over 30 currencies.
1.4% per transaction for ACH (Automated Clearing House)
- This means that for every ACH transaction, 1.4% of the transaction amount is charged as a fee.
- Example: If you transfer ₦5,000, the fee will be ₦70 (1.4% of 5,000).
NQR (Nigerian Quick Response) Transaction Fees
Instead of a percentage, fixed fees apply depending on the transaction amount:
Below ₦250 → ₦0.50K
Between ₦250 and ₦999.99 → ₦1 per transaction
Between ₦1,000 and ₦4,999.99 → ₦5 per transaction
For international transactions, a fee of 4.8% is charged.
#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.
Launched in 2015, Paystack has revolutionised payment in Nigeria. They were acquired by Stripe in 2020 and have since become one of the most trusted payment processors across Africa, with operations in Côte d’Ivoire, Egypt, Ghana, Kenya, Nigeria, Rwanda, and South Africa.
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 for international transactions, 3.9% + N100 . 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. Monnify by Moniepoint
While not the most popular compared to Paystack and Moniepoint, Monnify is also a reliable payment processor in Nigeria. Established by Moniepoint in 2015, and has slowly become a major player in the payment processor industry.
Monnify was founded to simplify and streamline digital transactions, the company has become a significant player in Nigeria. Moniepoint has since become a household name and touts as Nigeria’s latest unicorn at the time of writing this article.
In terms of charges, Monnify charges 1.5% which is capped at 2,000 naira or a flat fee of 500 naira (VAT excluded) for account transfers or for card payment. Only caveat is that with card payments, there’s no option of using a flat fee.
#5. Remita
Remita hits a high key when discussing online payment gateways in Nigeria. Using Remita, you can pay for a plethora of services such as your electricity, cable, taxes, and certain examinations besides purchasing airtime and data.
Using Remita, you can easily collect payments from customers even on public holidays, weekends, and after working hours, at a friendly cost, through a wide range of offline and online channels. With their flexible API, you can include remote in your website.
Remita is the preferred payment processor for the Nigerian government, but in March 2025, the government released a statement announcing the emergence of their new payment processor in favour of Remita. What this means for Remita is still unfolding.
On Remita, the fees payable for their services are Bills Payments (Regular): 1.5% of the transaction value subject to a maximum of ₦2,000 per transaction. On payroll processing, they charge about N250 per transaction.
Further Reading: How to Choose the Best Digital Marketing Agency
#6. Interswitch
Interswitch is an Africa-oriented, technology-driven company focused on payments. To date, they keep pushing the boundaries of innovation to deliver payment solutions that enable commerce across Africa.
Interswitch uses an exclusive system that connects the different banks in Nigeria and provides technology for ATM cards. This company powers over 11,000 ATMs in Nigeria, and they are also the owners of Verve, Nigeria’s most used payment card.
On Interswitch, there is a one-time integration fee of N150,000; for every subsequent successful transaction, a fee of 1.5% of the value of the transaction subject to a cap of N2,000 is charged. (i.e. for transactions below N133,333, a fee of 1.5% applies), and N2,000 flat fee (for transactions above N133,333).
#7. PayU
PayU develops innovative financial services solutions for high-growth markets across the globe where traditional players can’t. Furthermore, they offer local payment processing across different markets through their connections to gaining banks and alternative payment methods.
This company has over 1,800 payment specialists based in these local markets, supporting PayU’s 200,000+ merchants and the millions of online consumers. This platform has six arms that serve its large customer base, including:
#8. OpayCheckout
OPay is a prominent digital payment and financial technology company founded in Nigeria in 2018. Launched by Opera, a Norwegian software company known for its web browsers, OPay was strategically positioned to address the digital financial services gap in Nigeria’s fintech ecosystem.
Opay has since become a favourite because of its lightning-fast transactions. This same functionality is what has translated into their checkout. OpayCheckout works seamlessly with e-commerce platforms like Aliexpress. This has since bridge the gap between shopping online with dollars.
With Opay, you can simply shop in Niara without worrying about the constraints associated with shopping online with dollars.
Transaction fees
- International transfers: 4% per transaction
- Payouts to OPay wallet: N5 per transaction
- Payouts to other banks or mobile money operators (MMOs):
- N10 per transaction for amounts up to N5,000
- N25 per transaction for amounts between N5,001 and N50,000
- N50 per transaction for amounts over N50,000
- Bill payments: Based on commission
Other OPay fees
OPay charges a one-time fee of N50 for electronic transfers of N10,000 or more to personal and business accounts.
#9. GTPay
GTPay is a secure internet payment gateway developed by GTBank to revolutionize online transactions. By leveraging the Interswitch Network, GTPay enables businesses and consumers to process payments using debit cards from local and international banks, including major networks like Visa, MasterCard, and Verve.
To use GTPay, you are required to maintain a GTBank account, which streamlines the fund settlement process and ensures direct and efficient fund transfers. The system’s design allows for seamless integration with various eCommerce platforms, creating a smooth and user-friendly payment experience for both businesses and their customers.
One of GTPay’s most significant advantages is its rapid transaction settlement, with payments processed and funds transferred to merchant accounts within 24 hours. This quick turnaround is particularly beneficial for businesses that require immediate access to their revenues.
For fees, they charge a 1.5% of transaction amount for local transactions (Naira cards)
3% of transaction amount for international transactions (MasterCard, VISA)
#10. Voguepay
VoguePay stands out as a comprehensive payment services provider that offers seamless digital transaction solutions for merchants and individuals. Voguepay excels in its incredibly user-friendly integration process, allowing businesses to quickly implement check-out pages within minutes. Merchants can effortlessly set up payment systems that provide customers with a smooth, aesthetically pleasing online transaction experience.
The financial technology platform distinguishes itself through exceptional customer support, providing round-the-clock technical assistance to all users processing credit card payments. With a commitment to affordability, VoguePay offers remarkably low transaction fees, making it an attractive option for businesses of all sizes.
In terms of fees, localized operations bear a 1.5% fee, while cross-border transactions are charged at 3.8%.
Frequently Asked Questions About Online Payment Gateways In Nigeria For E-Commerce Transactions
An online payment gateway is a technology that allows merchants to accept payments from customers over the Internet securely. It acts as an intermediary between the customer, the merchant, and the bank, facilitating the authorization and processing of online transactions.
Online payment gateways are essential for e-commerce in Nigeria as they enable merchants to accept payments from customers who prefer to shop online. They help businesses expand their customer base, increase sales, and streamline the payment process.
When a customer purchases on an e-commerce website, they are redirected to the payment gateway’s secure page to enter their payment details. The gateway encrypts the information and sends it to the bank for authorization. Once approved, the transaction is completed, and the funds are transferred to the merchant’s account.
Yes, most online payment gateways charge transaction fees for processing payments. These fees may vary depending on factors such as the transaction volume, payment method used, and the gateway provider.
Conclusion
Online payment gateways have improved the economic strength of the nation by ensuring transactions between multiple currencies and individuals miles apart from each other. While a majority of these platforms allow both digital and physical products, some have their concerns and stick their guns to one.
Hence, even if you are choosing an online payment gateway or you’re making intense plans to build your own payment portal, it is always a highly profitable solution for an online merchant, unless you are a non-profit website.
