Top 6 Online Payment Gateways in Nigeria (2020 updated)

Top 6 Online Payment Gateways in Nigeria (2020 updated)

Are you looking for an easy to use online payment gateway in Nigeria to accept payment on your online store or social media platforms? There are a lot of online payment gateway providers in Nigeria to accept payments from local and international customers and clients.

If you are running a small business online, it is necessary to have a reliable payment gateway enabling your customers to make payment online without any delay in a simple and convenient way.

It could be quite difficult to choose a payment gateway that suits your business needs if you have never used any payment gateway before or if you are just starting an online business.

Choosing the right payment gateway for payments is a very important decision, it will have long term effects on the success and sustainability of your online business.

With so many to choose from, we’ll share with you what payment gateway means, why is it important and the list of the best online payment gateway in Nigeria that you can consider for your online business.

What is a Payment Gateway and Why is it important?

A payment gateway is a simple way to processes, verifies, and accepts (or declines) direct bank payments or credit card on behalf of businesses using secure internet connections.

Payment gateway simply allows business owners to accept payment from customers or clients who want to make use of credit card, debit card, e-wallet, etc to buy products, make a donation, subscribe to a membership, etc online.

It is important for online businesses to make use of payment gateway to provides multiple payment options, impart trust in your customers as they make their buys, and improve the customer checkout experience.

With a payment gateway, customers can make payment immediately and don’t have to go anywhere else if you are not online at the moment. You also have the opportunity to sell your products to anyone from anywhere online. 

If you run a strictly eCommerce site, which means that you’re processing payments online, there’s no other way to accept credit cards through the internet without a payment gateway to ensure the legitimate transactions.

How Payment Gateways works

When a customer made payment for products on a particular website or through a payment link giving to such customers on the social platform, the merchant’s website sends your debit/credit card details to the gateway for confirmation. The payment gateway verifies the details from the customer bank, then the amount will be transferred from the customer bank account to the merchant’s bank account. The process only takes a minute to occur.

In this guide, we’ll discuss the top 6 online payment gateways in Nigeria

Top 6 Online Payment Gateways in Nigeria

The following are the leading payment gateways providers available for Nigeria merchants trusted by thousands of businesses around the world.

1. Paystack

Top 6 Online Payment Gateways in Nigeria

Paystack is one of the top fintech companies in Nigeria that provides businesses with everything they need to accept and make payments online without writing a single line of code. 

Paystack is a simple, secure, and affordable payment gateway for small, medium, or large businesses as it allows merchants and other businesses to accept debit and credit card payments online from their customers on their website or through a payment form.

Paystack can easily be integrated into an online store. With Paystack, you can create a web-based subscription model for your online products; charging your users at a particular interval, without requesting them to enter their card detail every time. 

You can also create a peer to peer payments website or accept donation, membership fee, or set up a marketplace website where buyers and sellers run transactions with their credit cards.

Paystack has plugins that can be integrated into third-party platforms such as WordPress, Shopify, Magento, Drupal, etc to accept payment online.

What to Consider before using Paystack?

  • Setup Fee: Free
  • Local Transaction Fee: 1.5% + ₦100 as processing fee (₦100 fee waived for transactions under ₦2500 and the maximum fee you’ll ever pay per transaction is capped at ₦2000) 
  • International Transaction Fee: 3.9% + ₦100 as processing fee
  • Maintenance fee: None
  • Withdrawal fees: You will be charged N10 -to N50 per withdrawal of funds to your bank account. 

2. Flutterwave

Top 6 Online Payment Gateways in Nigeria

Flutterwave is another top fintech company in Nigeria that makes accepting payments online easy, safe, and secure by allowing businesses to accept debit/credit payments from customers online.

Rave is a product of Flutterwave which makes it easier for businesses to accept payments from customers in their local currency and in multiple currencies as customers can make payment with their cards, mobile wallet, or directly from their bank accounts even with their PayPal account as a feature on their system provides an option for businesses to accept payments from customers using their PayPal account.

Flutterwave also has an inbuilt eCommerce store that small businesses can utilize to sell their physical products with ease. The Flutterwave Store was conceived as part of Flutterwave’s resolve to help small businesses during the global COVID-19 pandemic since businesses were unable to operate during the quarantine.

With Flutterwave, online businesses with websites can integrate Flutterwave plugin into a third-party platform such as WordPress, Ecwid, Squarespace, Joomla, etc.

What to Consider before using Flutterwave?

  • Setup Fee: Free
  • Local Transaction Fee: 1.4% as processing fee 
  • International Transaction Fee: 3.8% as processing fee
  • Maintenance fee: None
  • Withdrawal fees: You will be charged N45 per withdrawal of funds to your bank account. 

3. CashEnvoy

Top 6 Online Payment Gateways in Nigeria

CashEnvoy is another top payment gateway provider in Nigeria that allows businesses to receive payment online. The company is owned by Electronic Settlement Limited, acclaimed to be the first payment gateway in Nigeria, and far back in 2010, CashEnvoy was described as Nigeria’s PayPal. 

CashEnvoy performs payment processing for online vendors, auction sites, and other commercial users with CashEnvoy making it easy for customers to make a payment without sharing their financial information.

CashEnvoy facilitates the transfer of money from person-to-merchant using the web application and personal email addresses. CashEnvoy has the flexibility of making payments using their bank accounts and debit/credit cards.

CashEnvoy can be easily integrated into most eCommerce platform to accept payment from multiple payment channels if you’re using third-party platforms like Shopify, WordPress Woocmmerce, Magento, OpenCart, etc.

What to Consider before using CashEnvoy?

  • Setup Fee: Free
  • Local Transaction Fee: 1.5% + N25 as processing fee 
  • International Transaction Fee: 3.9% + N12.60 as processing fee
  • Maintenance fee: None
  • Withdrawal fees: You will be charged N120 per withdrawal of ₦4,000.00 or less to your bank account. 

4. Paylink

Top 6 Online Payment Gateways in Nigeria

Paylink was launched by SystemSpecs, the owner of Remita is a web-based solution to helps small businesses as well as NGOs, social media sellers, freelancers, etc to easily receive payments from everywhere with ease without sharing their account details.

Paylink enables the merchant to extend their market reach, convert their social media business to a well structured online business by allowing users to easily set up a micro online store and accept payment and as well track their business transactions online.

Just like Flutterwave store, Paylink was created to ease the pain point of most small businesses and individuals who are unable to carry out business activities during the COVID-19 pandemic with the need to accept payment for various purposes while practicing social distancing.

With Paylink, users can get paid quickly, by simply sharing a customized link that is directly connected to their bank account with the customer to accept payment online. Businesses even have the option to add their own customized brand name and logo to the store and invoice.

What to Consider before using Paylink?

  • Setup Fee: Free
  • Local Transaction Fee: 2% as processing fee (the maximum fee you’ll ever pay per transaction is capped at ₦2500) 
  • International Transaction Fee: 4% as processing fee
  • Maintenance fee: None
  • Withdrawal fees: None

5. AmplifyPay

Top 6 Online Payment Gateways in Nigeria

Amplify is another amazing top Fintech company in Nigeria that focuses on providing one-time and recurring payment capabilities to businesses that carry out a recurring transaction. 

AmplifyPay majorly focuses on subscription-based businesses, i.e If you run an online business that sells membership or related services to subscribers monthly or annually, you can easily handle the subsequent monthly charges without prompting the user to enter their card information multiple times with AmplifyPay.

With AmplifyPay, you can simply be accepting monthly or annual payments from customers or subscribers without having a website or online store, you just need to create a simple form, send the link to your customer, and get paid. 

You can also easily integrate AmplifyPay into your website if you are using third-party platforms such as Woocommerce, PrestaShop, Drupal, Magento, Uber Cart, etc. making it easy for customers to pay with their cards or directly from their bank accounts.

What to Consider before using AmplifyPay?

  • Setup Fee: Free (but Certificate of Incorporation, Utility bills, and a corporate bank account is required).
  • Local Transaction Fee: 1.5% + ₦20 as processing fee (the maximum fee you’ll ever pay per transaction is capped at ₦2000).
  • International Transaction Fee: 3.8% + ₦20 as processing fee
  • Maintenance fee: None
  • Withdrawal fees: You will be charged N100 per withdrawal of funds to your bank account. 

6. Remita

Top 6 Online Payment Gateways in Nigeria

Remita is one of the best fintech company in Nigeria that handles comprehensive payment solution for anyone and everyone in Africa. Remita is an amazing payment gateway that helps individuals and organizations to easily receive payments from customers or clients. 

Remita also provides optional Payroll and HR solutions that can automate a company’s Payroll and deliver Payslips to organization Staff. Whether you’re a 2 or 200,000 staffed organization, Remita can handle and manage your payroll & HR management needs.

Remita service can be used by merchants with e-commerce websites, educational institutions, corporate companies, NGO’s and government agencies to receive various types of fees, charges, and dues online with ease.

Remita has eCommerce plugins that can be integrated with third-party platforms such as Woocommerce, Shopify, OpenCart, Prestashop, etc.

What to Consider before using Remita?

  • Setup Fee: Free
  • Local Transaction Fee: 2% as processing fee (the maximum fee you’ll ever pay per transaction is capped at ₦2500) 
  • International Transaction Fee: 4% as processing fee
  • Maintenance fee: None
  • Withdrawal fees: You will be charged N100 per withdrawal of funds to your bank account. 

Which is The Best Payment Gateway to use?

The best payment gateway is the one that provides you the best transaction fees, is available in your target region, provides good checkout experience, and offers a better user experience for your customers.

With a standard payment gateway for your business, you can monitor your transactions and customer buying activities with ease. A payment gateway provider also ensures that payment processing is secure and brings down the frequency as well as the severity of credit card frauds.

Conclusion

All these payment gateways discuss in this post can handle your basic online payment needs but note that these transaction fees are receptive to changes at any time. 

That’s it, we hope this guide helped you learned about the leading online payment gateways in Nigeria and their charges at this time. With those payment gateways, businesses can conveniently receive payments from customers online.

You don’t have to be online 24/7 before selling in this 24 century, simply learn how to start an online business and how to create an online store to get started selling online while you are sleeping or on vacation.

If you have any questions that have not been covered in this guide, ask in the comment section, we will give you an answer.

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