Top 15 Best Payment Gateways in Nigeria | 2023 List

As e-commerce continues to gain momentum, the need for seamless and secure payment methods has propelled the growth of an array of online payment platforms in Nigeria.

These platforms, often called payment gateways, serve as the virtual bridge between customers, merchants, and financial institutions, facilitating swift and secure monetary transactions.

Online payment gateways in Nigeria enable businesses and individuals to take payments online using a variety of channels or techniques, such as debit cards, bank transfers, direct debits from bank accounts, USSD, mobile money, and digital wallets.

Selecting payment gateways in Nigeria can be difficult. However, the task can be completed using the popular and widely used online payment gateways in Nigeria known to top merchants and businesses.

In this article, we explore the best payment gateways in Nigeria, analyzing their features, security protocols, user-friendliness, and compatibility with various business models.

Staying informed about the best payment platforms in Nigeria is not just an option—it’s a necessity. Embark on a journey of discovery and empowerment in the realm of online payments in Nigeria.

What are Payment Gateways?

A payment gateway is a service that facilitates credit card payments between a business and its clients. A payment gateway is an online business that processes credit card transactions. When customers make a purchase, they are taken to the payment gateway’s website, where they submit their personal and credit card information.

After this information has been validated, it will be returned to the company’s website, and the transaction will be completed. Payment gateways can be provided by organizations such as Visa or Mastercard or by independent providers.

Payment gateways accept credit card transactions for e-commerce websites and brick-and-mortar establishments that finish offline purchases using terminals with magnetic strips or chip readers. They also collaborate closely with financial institutions such as banks and credit card companies to ensure a smooth interchange of merchant-buyer transactions.

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Why Is Having an Online Payment Gateway Necessary?

As a business owner, you may already know the importance of online presence. However, a website or social media page is insufficient in today’s digital age.

You must offer your customers a secure and convenient online payment method. This is where a payment gateway comes into play.

Here are some reasons why having an online payment gateway is important for your business:

1. Increased Sales

You can attract customers who prefer to shop and pay online by offering an online payment option.

Studies have shown that businesses that accept online payments increase sales compared to those that don’t. Customers are more likely to purchase when they can pay using their preferred method.

2. Convenience

An online payment gateway provides convenience for both you and your customers. Customers can pay for their purchases from anywhere, at any time, using their preferred payment method.

Meanwhile, you can receive payments instantly and securely without needing manual processing or bank trips.

3. Security

One of the biggest concerns for businesses and customers alike is the security of online transactions. However, online payment gateways are designed to provide secure payment processing.

They use encryption and other security measures to protect sensitive information like credit card details. This gives customers peace of mind when making online purchases and helps to build trust in your business.

4. Faster Payments

When you accept payments online, you can receive them much faster than traditional payment methods.

This is because online payments are processed instantly, whereas checks and other forms of payment can take days or even weeks to clear. This means you can access funds more quickly, which can be especially beneficial for small businesses with limited cash flow.

5. Competitive Advantage

Finally, having an online payment gateway can give you a competitive advantage over other businesses that don’t offer this service.

Customers are increasingly looking for businesses that offer convenient and secure online payment options, and by providing this, you can stand out from the crowd and attract more customers.

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Top 15 Best Payment Gateways in Nigeria

As a business owner in Nigeria, one of the most important things you need to consider is how to receive customer payments. To do this, you will need a payment gateway that allows you to process transactions online securely. 

Here are some of the best payment gateways in Nigeria and their setup fees and local and international transaction rates.

• 1. Paystack
• 2. Rave by Flutterwave
• 3. VoguePay
• 4. Monnify
• 5. Remita
• 6. Interswitch Webpay
• 7. PayU
• 8. GTPay
• 9. Squad by GT Bank
• 10. Opay
• 11. SimplePay
• 12. Amplify Pay
• 13. E-Pay
• 14. eTranzact
• 15. CashEnvoy

#1. Paystack

Paystack is a popular payment gateway founded in Lagos, Nigeria, in 2016. The platform allows businesses to accept payments from customers all over the world.

Paystack easily integrates with various e-commerce platforms, including Shopify, WooCommerce, and Magento. The setup fee for Paystack is ₦20,000, and the local transaction rate is 1.5% + ₦100. Paystack charges a rate of 3.9% + ₦100 for international transactions.

One of the benefits of using Paystack is its user-friendly interface, which makes it easy for businesses and customers to use. Paystack offers fast settlement times, with funds typically transferred to your bank account within 24 hours.

Additionally, Paystack has a robust fraud prevention system that helps to protect businesses from fraudulent transactions.

Pros 

• 1. Paystack offers a simple and easy-to-use platform, ideal for business owners who are not tech-savvy.
• 2. Paystack offers multiple payment options, including debit/credit cards, bank transfers, USSD, and mobile money, which makes it easier for customers to make payments.
• 3. Paystack processes transactions fast, which is important for businesses that need to process payments quickly.
• 4. Paystack has transparent pricing with no hidden charges or setup fees.

Cons 

• 1. Paystack is only available in Nigeria and Ghana, which disadvantages businesses in other countries.
• 2. Paystack’s customer support can be slow to respond to customer inquiries, which can frustrate business owners.
• 3. Paystack has a strict KYC (Know Your Customer) verification process, which can be time-consuming for business owners.
• 4. Paystack limits the maximum amount of money that can be transferred per transaction, which can be inconvenient for businesses with high-value transactions.

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#2. Flutterwave

Flutterwave is another popular payment gateway in Nigeria. Businesses can use the platform to take payments from clients worldwide.

Easily integrates with various e-commerce platforms, including WooCommerce, Magento, and PrestaShop. The setup fee for Flutterwave is ₦0, and the local transaction rate is 1.4% + ₦10. Flutterwave charges a rate of 3.8% + ₦10 for international transactions.

One of the benefits of using Flutterwave is its ability to accept payments in multiple currencies, including USD, GBP, and EUR. Flutterwave offers fast settlement times, with funds typically transferred to your bank account within 24 hours.

Additionally, Flutterwave has a robust fraud prevention system that helps to protect businesses from fraudulent transactions.

Pros

• 1. Accepts various payment options – credit and debit cards, bank transfers, mobile money, and more.
• 2. Has a developer-friendly API that allows you to integrate it with your website or app.
• 3. Offers competitive fees compared to other payment gateways.
• 4. Has strong security measures in place to protect your transactions.
• 5. Allows you to receive payments in multiple currencies, which is great if you have an international customer base.

Cons

• 1. Flutterwave can be a bit complex to set up for first-time users. The documentation is not as comprehensive as it could be, which may cause some frustration.
• 2. Flutterwave is only available in a few countries, so if you’re outside of those regions, you may be unable to use it.
• 3. Some reports have been of slow transaction speeds and customer support issues.

#3. VoguePay

VoguePay is a popular payment gateway operating in Nigeria since 2012. It offers a range of features that can help businesses of all sizes process payments locally and internationally from customers.

VougePay offers a free account setup, but there are fees for some of its premium features, such as recurring billing and invoicing. VoguePay charges a flat rate of 2.5% + ₦50 per transaction for local transactions.

For international transactions, VoguePay charges a flat rate of 4.5% + $0.35 per transaction.

One of the advantages of using VoguePay is that it supports a wide range of payment methods, including credit and debit cards, bank transfers, and mobile payments.

It also offers fraud protection and chargeback management tools to help protect your business from fraudulent transactions.

Pros

• 1. VoguePay’s intuitive and user-friendly interface is easy to navigate, even for those with little technical knowledge.
• 2. VoguePay allows for transactions in multiple currencies, making it a great option for businesses operating in multiple countries.
• 3. Its robust security measures, including SSL encryption and two-factor authentication, VoguePay provides a secure environment for merchants and customers.
• 4. VoguePay offers exceptional customer support, including a 24/7 live chat feature and a detailed knowledge base.

Cons

• 1. VoguePay’s fees can be high for small businesses, especially if you don’t qualify for the lowest fee structure.
• 2. The verification process for merchants can be quite stringent and lengthy, which may deter some from using the platform.
• 3. VoguePay’s payment page can’t be customized beyond adding a logo and changing the colors.
• 4. VoguePay’s payouts can take several business days to process, which may be a drawback for some businesses.

#4. Monnify

Monnify is another popular payment gateway in Nigeria that offers a range of features that can help businesses process payments quickly and efficiently.

Monnify offers a free account setup, but there are fees for some of its premium features, such as API integration and custom branding.

For local transactions, Monnify charges a flat rate of 1.5% + ₦50 per transaction. Monnify does not currently support international transactions.

One of the advantages of using Monnify is that it offers fast settlement times, which means you can receive your payments quickly.

It also offers a range of developer tools, such as APIs and webhooks, to help you integrate the payment gateway into your website or mobile app.

Pros

• 1. Fast and easy setup process.
• 2. Allows multiple payment options, including card payments, bank transfers, and mobile money.
• 3. Supports various currencies.
• 4. User-friendly interface.
• 5. Offers API integration for developers.
• 6. Reliable customer support.

Cons

• 1. Charges a transaction fee on every payment received.
• 2. The maximum amount per transaction is capped.
• 3. Some users have reported delayed payments.
• 4. Limited marketing and branding options for businesses.

#5. Remita

Remita is a payment gateway that was launched in 2015 by SystemSpecs. The payment gateway has become very popular, with many businesses in Nigeria relying on it for their transactions.

One of the benefits of Remita is that it is very easy to set up, and the setup fee is relatively low. The setup fee for Remita is ₦4,000.

Remita also offers very competitive transaction rates. For local transactions, the transaction fee is 1%. For international transactions, the transaction fee is 4%. This means that if you are receiving payments from outside Nigeria, you will be charged a higher transaction fee.

Remita is a digital payment platform that recently gained significant popularity in Nigeria. It provides a range of features and services, but like any other platform, it has advantages and disadvantages.

Pros

• 1. Remita offers a variety of payment options, including online transfers, bank payments, and card payments.
• 2. Remita uses state-of-the-art security protocols to ensure all transactions are secure and protected from fraud and hacking.
• 3. With Remita, you can make payments from anywhere, anytime, without going to a bank.
• 4. The platform is fast and reliable, with transactions usually processed in real time.

Cons

• 1. Remita charges transaction fees for every payment, which can be expensive, especially for high-value transactions.
• 2. Remita can be a bit complicated, especially for people who are not tech-savvy or familiar with online payments.
• 3. Although Remita is a widely used payment platform in Nigeria, it is not yet available on all merchant websites or platforms.
• 4. Sometimes, Remita’s system may have issues or experience downtime, causing inconvenience for users.

#6. Interswitch Webpay

Interswitch Webpay is a payment gateway owned by Interswitch, a leading payment processing company in Nigeria.

Interswitch Webpay is a very reliable payment gateway that many businesses in Nigeria have used for years. The setup fee for Interswitch Webpay is ₦150,000.

This is a bit higher than the setup fee for other payment gateways, but it is still relatively affordable. 

The transaction rates for Interswitch Webpay are also very competitive. The transaction cost for local transactions is 1.5%. For international transactions, the transaction fee is 3.5%.

If you receive payments from outside Nigeria, you will be charged a lower transaction fee with Interswitch Webpay.

Pros

• 1. Interswitch Webpay offers top-notch security protocols to ensure that all transactions are safe and secure.
• 2. The platform is easy to navigate, making it convenient for customers to make payments.
• 3. Interswitch Webpay offers a variety of payment options, including card payments, bank transfers, and mobile payments.
• 4. The platform enables swift payments, reducing transaction times and increasing convenience.

Cons

• 1. The platform charges transaction fees that can be quite high, especially for small transactions.
• 2. Although Interswitch Webpay offers multiple payment options, some users may find that the available options do not suit their needs.
• 3. Some users have reported issues with the platform’s customer support, citing long wait times and poor responsiveness.

#7. PayU

PayU is a popular payment gateway that is widely used by businesses in Nigeria. It is known for its user-friendly interface, fast processing time, and high-level security.

PayU offers a variety of payment options, including credit/debit cards, bank transfers, and e-wallets. 

The setup fee for PayU is free, which makes it an attractive option for small businesses. The local transaction rate for PayU is 2.5%, which is competitive compared to other payment gateways in Nigeria.

For international transactions, PayU charges a rate of 3.8%. PayU is a reliable payment gateway perfect for businesses of all sizes.

Pros

• 1. PayU offers a clean and easy-to-use interface, making it simple for even novice users to set up.
• 2. PayU supports over 100 different currencies, which is great if you plan on selling to customers worldwide.
• 3. PayU offers excellent customer support via phone, email, and chat, so you can rest assured that help is just a click or call away.
• 4. With PayU, you can customize your checkout process to match your website’s branding, which can improve user experience and increase sales.

Cons

• 1. PayU only supports a limited number of payment methods, which may not be ideal for customers who prefer to pay using a method that isn’t supported.
• 2. Compared to other payment gateways, PayU charges a slightly higher transaction fee, which can eat into your profit margins.
• 3. To use PayU, you’ll need to provide detailed documentation about your business, which can be time-consuming.
• 4. PayU is only available in select countries, so if you plan on selling to customers outside these regions, you’ll need to find an alternative payment gateway.

#8. GTPay

GTPay is another popular payment gateway in Nigeria that is widely used by small and medium-sized businesses. It is known for its easy integration process, excellent customer support, and high-level security.

GTPay offers a variety of payment options, including credit/debit cards, bank transfers, and e-wallets. The setup fee for GTPay is ₦75,000, which is quite expensive compared to other payment gateways in Nigeria. 

However, GTPay offers a local transaction rate of 1.5%, the lowest in Nigeria. For international transactions, GTPay charges a rate of 3.5%, which is also quite competitive.

Overall, GTPay is an excellent payment gateway perfect for businesses that process a high volume of transactions.

Pros

• 1. Wide range of accepted payment options
• 2. Fast processing times
• 3. Secure transactions with 3D Secure authentication
• 4. Mobile friendly
• 5. Multi-currency support

Cons

• 1. High transaction fees
• 2. Limited availability in some countries
• 3. No chargeback protection
• 4. Limited customer support options
• 5. Complexity of setup for some merchants

#9. Squad by GT Bank

Squad by GT Bank is a payment gateway for small and medium-sized businesses. It offers a quick and easy setup process with no setup fee. Squad charges a local transaction rate of 1.5% and an international transaction rate of 3.5%. 

This payment gateway is highly recommended for businesses needing a reliable and affordable one. Squad offers additional features such as invoicing, online store integration, and payment links.

Pros

• 1. Provides a platform for social saving with friends
• 2. Offers rewards for meeting saving targets
• 3. Enables automatic deductions for ease of saving
• 4. Supports up to 10 people in a savings group

Cons

• 1. Squad account requires a GT Bank account
• 2. Interest rate on savings is low compared to other savings options
• 3. Limited flexibility in withdrawal options
• 4. Requires all group members to have active GT Bank accounts. 

#10. Opay

Opay is another popular payment gateway that has gained much popularity in Nigeria. It is a subsidiary of Opera Software and offers various payment solutions.

Opay charges a setup fee of N10,000 and a local transaction rate of 1.5%. However, the international transaction rate is slightly higher at 3.5%. 

Opay is known for its user-friendly interface and fast transaction processing time. It offers features like bill payments, airtime top-up, and money transfers.

Pros

• 1. Opay offers quick and convenient transactions with just a few clicks on your phone
• 2. You can enjoy discounts and cashback rewards when using the platform for transactions such as bill payments or airtime top-up
• 3. The platform provides a secure and encrypted way of processing your transactions, giving you peace of mind that your personal and financial information is safe

Cons

• 1. Opay may not be available in all regions or countries, limiting its accessibility for some users
• 2. There have been reports of occasional technical glitches and errors during transactions
• 3. Some users have reported higher fees or charges when compared to other payment platforms

#11. SimplePay

SimplePay is a payment gateway that allows businesses to accept customers’ payments locally and internationally.

It is a user-friendly platform that seamlessly integrates websites, mobile apps, and other payment channels. 

Setting up a SimplePay account is free, with no monthly or annual fees. SimplePay charges a local transaction fee of 1.5% + ₦10 for transactions below ₦2,500 and 1.5% + ₦25 for transactions above ₦2,500. SimplePay charges a fee of 3.9% + $0.25 per transaction for international transactions.

Pros

• 1. SimplePay has a very simple and easy-to-navigate interface.
• 2. SimplePay costs are relatively low compared to other payroll platforms.
• 3. The company has a responsive customer service team that offers quick assistance to users.
• 4. SimplePay automates tax calculations, which saves time and minimizes the risk of errors.
• 5. SimplePay is a full-featured payroll platform with various options to cater to small, medium, and large businesses.

Cons

• 1. Unlike other payroll platforms, SimplePay doesn’t offer a free version, which may discourage some small business owners.
• 2. SimplePay’s integration with third-party platforms is limited, which could be a problem for users who need to connect with other software applications.
• 3. SimplePay is entirely cloud-based and has no offline software, which may be an inconvenience to users who require access to data when there is no internet connection
• 4. SimplePay has fewer self-service features for employees compared to other platforms.

#12. Amplify Pay

Amplify Pay is another payment gateway that allows businesses to accept payments from customers locally and internationally.

It is a secure and reliable platform that provides real-time payment notifications. Setting up an Amplify Pay,

The account is free, with no monthly or annual fees. 

Amplify Pay charges a local transaction fee of 1.5% + ₦10 for transactions below ₦2,500 and 1.5% + ₦25 for transactions above ₦2,500. Amplify Pay charges a fee of 3.5% + $0.3 per transaction for international transactions.

Pros

• 1. User-friendly platform
• 2. Competitive transaction fees
• 3. Offers recurring payments and invoicing options
• 4. Strong customer support

Cons

• 1. Limited integration options with other software
• 2. Higher fees for chargebacks and refunds
• 3. No option for instant payouts
• 4. Limited international currency support

#13. E-Pay

E-Pay is a payment gateway that is easy to set up and integrates well with major e-commerce platforms. With E-Pay, you can accept payments from all major credit and debit cards and mobile money wallets. 

The setup fee for E-Pay is relatively low, making it an excellent option for startups on a tight budget. The local transaction rate for E-Pay is also reasonable, with a standard fee of 1.5% per transaction.

However, the international transaction rate for E-Pay is slightly higher than other payment gateways, with a fee of 3.5% per transaction.

Pros

• 1. E-pay allows you to make purchases or pay bills from the comfort of your home without physically visiting a store or bank.
• 2. Transactions are processed quickly, often in seconds, so that you can receive goods or services immediately.
• 3. Most Epay systems use encryption and other security measures to protect your sensitive information and prevent fraud.
• 4. E-pay is available 24/7, so you can make payments or purchases anytime.

Cons

• 1. Like any technology, e-pay systems are not foolproof and may encounter technical difficulties preventing the completion of transactions.
• 2. Some Epay systems charge fees for transactions or account maintenance, which can add up over time.
• 3. E-pay systems often require you to provide personal information, which may be shared with other parties.
• 4. E-pay requires a reliable internet connection and functioning electronic devices, which may not always be available or affordable.

#14. eTranzact

eTranzact is another popular payment gateway in Nigeria. It is known for its robust security features, making it a safe option for businesses that handle sensitive customer information.

eTranzact also offers a range of payment options, including cards, bank transfers, and mobile money wallets. 

The setup fee for eTranzact is slightly higher but still affordable for startups. The local transaction rate for eTranzact is also competitive, with a standard fee of 1.5% per transaction.

However, the international transaction rate for eTranzact is higher than other payment gateways, with a fee of 3.5% per transaction.

Pros

• 1. Easy and convenient way to make online payments.
• 2. Offers various payment options, including card payments and bank transfers.
• 3. User-friendly platform with an intuitive interface.
• 4. Secure payment platform with multiple layers of authentication.

Cons

• 1. Transaction fees can be relatively high, especially for small businesses or individuals.
• 2. Customer support can be slow in responding to queries or resolving issues.
• 3. Limited coverage in some areas and limited payment options compared to other payment platforms.
• 4. High minimum threshold for bank transfers, which can be a disadvantage for small transactions.

#15. CashEnvoy

CashEnvoy is one of the leading payment gateways in Nigeria that is trusted by businesses and individuals.

Setting up an account on CashEnvoy is free, and there is no monthly subscription fee to be paid. Local transactions with CashEnvoy are 1.5% + ₦20, while international transactions are charged a 3.9% + ₦20 rate.

CashEnvoy is not just easy to use; it is also safe and secure. All transactions on the platform are protected with a secure 256-bit SSL encryption, ensuring that your financial information is not exposed to unauthorized parties.

CashEnvoy supports local bank transfers, Mastercard, and Visa, making it easy for users to receive and send payments.

Pros

• 1. CashEnvoy provides a secure platform for online payments and has a good reputation for reliability.
• 2. CashEnvoy is simple to use, with easy account registration and payment processes.
• 3. CashEnvoy allows users to make payments via various channels, including credit/debit cards, bank transfers, and mobile money.
• 4. CashEnvoy facilitates international payments and currency conversions, making it suitable for businesses and individuals across borders.

Cons

• 1. CashEnvoy charges transaction fees for its services, which can be a turnoff for some users.
• 2. The platform’s customer support is sometimes slow to respond to user queries or complaints.
• 3. Users have complained about the lengthy and cumbersome process of withdrawing funds from their CashEnvoy accounts.
• 4. CashEnvoy has limited integration with other payment platforms and is not widely accepted by all online merchants.

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What Factors to Consider When Selecting Payment Gateways in Nigeria  

Consider how you felt the last time you had to wait for a vendor to validate your transaction or, more likely when your money was delayed.

A company’s payment gateway sometimes creates these problems. This section will review some considerations when selecting a payment gateway.

1. Cost 

Every business owner wants to know how to make or save money. Payment gateways vary in price, so choose one that makes financial sense for your company. Transaction, setup, and monthly maintenance fees are all charges to consider.

2. Rate of Transaction Success  

Customers want to make purchases with as little stress as possible; thus, selecting a payment gateway with a high transaction success rate is critical.

Customers may be hesitant to do business with you if payments fail on your platform regularly. However, determining which payment gateway has a high transaction success rate can be difficult because you frequently rely on the service provider’s words.

But don’t just take their word for it; read the client reviews to understand their transaction success rates better.

3. Time for Settlement  

The time it takes to get your money is called the settlement period. Unlike peer-to-peer payments, customer payments may take some time to reach you. Most payment gateways have a settlement time of one to seven days.  

4. Options for Payment   

You want to give your consumers as many payment alternatives as possible. Card payments, bank transfers, PoS payments, and USSD are examples of payment channels.

If your company has a foreign clientele, it may also entail offering them different currency payment alternatives.

5. Security  

Digital payment methods are easy, but they are also risky. Before selecting a payment gateway, make certain that it is secure.

A standard security protocol to look for is whether it is PCI-DSS level 1 compliant. This is stated on the websites of the majority of payment gateway companies.

6. Billing Regularly  

If you have a subscription business, you don’t have to go after clients after each billing cycle. A payment gateway with recurring billing functionality ensures that your clients are charged at the appropriate time, allowing you to focus on other aspects of your business.

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Frequently Asked Questions

Conclusion

Choosing the right payment gateway for your online business in Nigeria is crucial. Finding a gateway that offers easy integration, fast and secure transactions, and reliable customer support is important.

From our research, Flutterwave, Paystack, and Interswitch Webpay emerged as the best payment gateways in Nigeria, offering businesses a range of features to ensure successful payment processing. 

As more and more Nigerian businesses venture online, choosing a payment gateway that aligns with your business needs will be a determining factor in achieving online success.

It’s worth noting that there are many other payment gateway options available, so it’s important to conduct research and select the right one for you