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 2009. Websites that integrate with CashEnvoy can accept payment from all the major Nigerian debit cards, international Visa/MasterCard, and also from the CashEnvoy wallet.

On a personal account, you can make payments but you can’t send any money, withdraw funds or receive payment. On the other hand, a business account allows you to send and receive money for free. But if you want to withdraw funds from 4,000 or less, you will be charged N120.

On local transactions, they will charge you 1.5% + N25.00 and 3.9% + N12.60 on international transactions.

#5. Remita


Remita hits a high key when you talk about 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.

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 ATM machines in Nigeria, as 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 and 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 consumers making online payments. This platform has six arms that serve its large customer base including:

PayU Easy

Online payments for startups and small businesses

PayU Plus

Online payments for small to large businesses

PayU Enterprise

A customizable solution ideal for large businesses

PayU XPress

Safe, easy, single-click shopping

PayU Subscription

Full control of subscription payments

PayU Receive

Securely accept online payments for goods and services

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.


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.

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