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  A payment gateway is a technology that enables merchants to accept bank card or direct payments for goods purchased by their customers. It’s used by e-commerce websites and brick and mortar stores alike, and by other organizations that need to receive payments electronically. The form that gateways take will differ according to the purpose for which they are deployed. They may either be online payment gateways (used by websites to collect payments on the web) or in-store payment gateways.
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Online payment gateways have become more prominent in Nigeria in recent times, as more web stores have come on stream. Merchants now have a lot of options to choose from; sometimes, it’s hard to decide which ones are worth integrating with your e-commerce website. If you’re looking to set up an online store and you’re looking for a payment gateway that’ll work well with it, you may check out any of the six we review here.


Flutterwave was founded in 2016 by a team of software engineers and ex-bankers. It makes web and app-based payments possible so that users can receive money from their customers wherever they are. The platform allows payments via debit and credit cards, mobile money, USSD, and bank transfer. Websites that use the Flutterwave gateway can accept card payments from territories where Verve, Mastercard, and Visa cards are utilized. Setting up the Flutterwave gateway is free, and there are no annual fees. However, there are charges on each successful transaction. It takes a 1.4% commission on local transactions and a 3.8% charge on international payments. Some of Flutterwave’s customers include, WhoGoHost, Jumia, Wakanow, GIGM, and Hygeia HMO.


Launched in 2015, Paystack now accounts for almost 20% of merchant transactions on digital channels in Nigeria. The company was recently acquired by Stripe, an international payments giant headquartered in the USA. With Paystack, businesses can receive customers’ payments through bank accounts, bank transfers, and debit and credit cards. Online money collections are made possible by Paystack’s APIs, which also enable transaction authorization and identity verification. There are no setup or annual fees charged on this platform. It does take a 1.5% + ₦100 on local card payments and a 3.9% + ₦100 fee on international card transactions. Paystack’s clients include entrepreneurs, corporates, and international companies. Some of the recognizable names on its customer list include MTN, PiggyVest, Cowrywise, Kuda, AXA Mansard, and Bolt.


VoguePay was founded in 2012 by a team of five. Its payment solution makes it easy for businesses and other organizations to collect funds from their customers or patrons worldwide. It also allows users to track their earnings, minimize the risk of fraud, and have their collections transferred directly into their bank accounts. It takes just a few minutes to set up a VoguePay account. After completing this process, merchants can begin accepting payments in a range of currencies, and through online and mobile channels. There’s a 1.5% charge on transactions carried out with naira cards (plus an extra ₦30 on payments exceeding ₦2,500) and a 0.99% + ₦99 fee on withdrawals. International transactions attract a 3.8% charge. As of 2019, VoguePay was said to have over 100,000 merchants on its platform. In the preceding year, it achieved the milestone of having processed $100 million worth of payments since it began operations.


One of Nigeria’s oldest fintech companies, Interswitch was established in 2002 to help businesses receive payments electronically. It serves clients in the banking, transportation, health, retail, and education sectors, among others. Interswitch’s internet payment gateway, Webpaydirect, facilitates online payments with Interswitch-enabled cards (issued by all banks). A standout characteristic of this product is that it’s customizable; user businesses can fashion it to reflect their brand or corporate identity. It also has transaction authorization and splitting functions. There’s a ₦150,000 set up fee for Webpaydirect. No annual fees apply. Transactions below ₦133,333 attract a 1.5% charge. Payments exceeding that amount come with a ₦2,000 flat fee.


The eTranzact payment gateway (WebConnectPlus) supports payments via bank accounts and bank cards (Visa and Mastercard). The setup fee for eTranzact’s payment gateway is ₦150,000. Transaction charges apply as well. But there are no annual fees to be paid for using the platform. In its almost two decades of operations, eTranzact has processed trillions of naira worth of transactions. It has also served numerous organizations, including banks, transportation and telecommunication companies, and the public sector.


Remita was founded in 2005 by the Nigerian tech company SystemSpecs. It provides several payment solutions including a digital payment gateway for e-businesses. The platform supports transactions carried out with credit and debit cards, POS, at bank branches, and via bank transfers. There are no fees for setting this solution up, and no annual charges are levied. Users do have to pay a 2% fee on local transactions and a 4% commission on international payments. The platform accepts naira and dollar payments.

Final Words

Payment gateways are an important part of the online business landscape. They make business undertakings on the web a lot easier and open the doors to a global marketplace. If you’re hunting for one that’ll serve your online store right, you may choose from the options we’ve presented here. Featured image source: Web Designers In Lagos
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This article was first published on 6th March 2021


Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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