E-payment growth has surged in Nigeria, with transactions growing by 88.09 percent to N237 trillion in the first quarter (Q1) of 2024.
Cashless transactions hit more than N600 trillion in 2023, up from N395.38 trillion in 2022, as more people embraced digital payment gateways. “In Nigeria, real-time payments are quickly becoming a viable alternative to cash, historically the dominant choice for payments in the country,” said ACI Worldwide in a report titled ‘Prime Time for Real-Time Global Payments.’
According to analysts, more Nigerians will continue to embrace e-payments, and fintechs will play a crucial role. “The rapid growth of Nigeria’s fintech sector is a positive force for economic development, financial inclusion, and innovation, shaping a more inclusive and digitally empowered economy…,” Dahlia Khalifa, International Finance Corporation (IFC)’s Regional Director for Central Africa and Anglophone West Africa, penned in an opinion piece recently.
Here is BusinessDay’s analysis of some of the players in this sector:
Flutterwave
Flutterwave, founded by Iyinoluwa Aboyeji and Olugbenga Agboola in 2016, is one of the leading payment gateways in Nigeria and across Africa. It is known for its robust platform that facilitates seamless cross-border payments.
It has processed over 550 million transactions totalling over $32 billion and served over two million businesses. The firm has extensive infrastructure across 34 African countries, with Uganda recently joining the list. It supports over 150 currencies and integrates with major global payment systems like PayPal, Alipay, and mobile wallets.
Flutterwave has grown rapidly, attracting significant investments from global players like Y Combinator and Mastercard. The platform’s versatility and developer-friendly API make it a top choice for businesses of all sizes, from startups to large enterprises.
Read also: Fintech seeks slice of N600tn e-payment market with new solution
Paystack
Paystack is another powerhouse in Nigeria’s fintech space, offering a highly reliable and easy-to-integrate payment gateway. Founded by Shola Akinlade and Ezra Olubi, it quickly became the go-to solution for Nigerian businesses looking to accept payments online. The platform supports multiple payment methods, including credit and debit cards, bank transfers, and mobile money. Paystack’s success drew international attention, leading to its acquisition by Stripe for $200 million in 2020. The gateway is known for its excellent customer service, fast payment processing, and extensive documentation for developers. Paystack recently announced that it processed N1 trillion worth of transactions for the first time in July 2024, a testament to the wide use of digital payment in the country.
Interswitch
Interswitch is a pioneer in Nigeria’s digital payment landscape, providing a comprehensive suite of payment solutions. Founded by Mitchell Elegbe, Interswitch initially started as a transaction switching and electronic payment processing company but has expanded into a major player in the fintech space. Its payment gateway, Webpay, allows businesses to accept payments via cards, bank transfers, and mobile money. Its extensive experience and robust infrastructure make it a trusted choice for large enterprises and government bodies across Nigeria.
E-Tranzact
E-Tranzact is one of Nigeria’s earliest payment gateways, founded by Valentine Obi. It offers various payment solutions, including mobile banking, online payments, and e-commerce services. E-Tranzact’s platform supports various payment methods, such as cards, mobile phones, and ATMs. The company has played a role in promoting financial inclusion in Nigeria by providing services catering to banked and unbanked populations. E-Tranzact’s reliability and wide reach have made it a preferred choice for many businesses in Nigeria.
Remita
Remita, developed by SystemSpecs, is a versatile payment platform that serves individuals, businesses, and government agencies. Founded by John Obaro, Remita is best known for managing the Nigerian government’s Treasury Single Account (TSA), handling significant volumes of public sector funds. The platform supports multiple payment channels, including internet banking, mobile wallets, and debit cards. Remita’s comprehensive features and secure environment make it a top choice for businesses looking for a reliable payment gateway.
Paga
Paga is a mobile payment platform that has become one of Nigeria’s most popular financial services providers. Tayo Oviosu founded it as a mobile money service aimed at promoting financial inclusion by providing banking services to the unbanked population. Over time, it has expanded its offerings to include a payment gateway that allows businesses to accept payments via mobile money, cards, and bank transfers. Paga’s large agent network across Nigeria has made it accessible to millions of Nigerians, contributing to its widespread adoption.
Read also: Why cash-based transactions dominate despite e-payment boom
Fintava
Fintava is a banking-as-a-service startup that helps businesses plug into an API to embed banking services without worrying about compliance, regulation, or licenses.
It is also a payment gateway, and since it was launched less than a year ago, it has processed about N50 billion in transactions. It offers an app as a service, helping businesses that want to use its platform but haven’t built out its product yet, build.
Monnify
Monnify is a relatively new payment gateway in Nigeria, developed by fintech company Moniepoint. It supports payments via cards, bank transfers, and USSD, making it a versatile option for various types of transactions. The platform is known for its competitive pricing, ease of integration, and efficient customer support, which has helped it attract a growing number of users in Nigeria.
Opay
Opay is a fintech platform owned by Opera Software that offers various financial services, including payments, loans, and ride-hailing. Opay’s payment gateway in Nigeria has become famous for its convenience and low transaction fees. The platform supports various payment methods, including cards, bank transfers, and mobile money. Its extensive network and integration with other Opera-owned services have helped it gain a significant market share in Nigeria’s fintech space, particularly among small businesses and informal sectors.
Seerbit
Seerbit is a modern payment gateway founded by Omoniyi Kolade. It offers businesses a secure and reliable platform to accept payments online. Seerbit supports various payment options, including cards, bank transfers, and mobile money. The platform is designed to cater to businesses of all sizes, with features like real-time payment tracking, fraud detection, and seamless integration with websites and apps. Seerbit’s focus on innovation and customer-centric services has made it a rising star in Nigeria’s competitive payment gateway market.
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