Financial Services focused Software Developer, Oniyide Olaoluwa has listed three ways for business to collect digital payments in Nigeria.

He noted that Nigeria is one of the fastest-growing economies in Africa, with a $440 billion GDP in 2017. Over the years, we have seen the nation deepen internet penetration and consequently the adoption of mobile technology through the decade. Savvy business owners have latched onto this growth to provide services to a sea of internet users. Increased eCommerce and social commerce activities are some of the results of having more people access the internet.

Although cash still rules a largely informal economy like Nigeria, the internet and digital payment channels give businesses the platform to engage in trade with customers that will ordinarily be beyond their reach.

Financial Services focused Software Developer, Oniyide Olaoluwa has listed three ways for business to collect digital payments in Nigeria.

The first method is through online payment gateways; the digitalisation of trade and transformation in the global business ecosystem has seen numerous business owners resorting to modern-day online payment forms such as PayPal and Stripe. In Nigeria, we have Paystack, Flutterwave and others powering online trade. Online payment gateways have become the default payment channel for digital businesses because by integrating with a single provider, you get access to multiple payment channels for your business. They allow customers to pay however they want with cards, Bank transfers, and USSD codes as payment options. Depending on the provider, payment gateway providers charge a fee per successful transaction. For example, Paystack charges 1.5% of the transaction value, with a maximum fee of N1,000 per card transaction.

With online payment gateways, there is a technical side to consider. You might require the services of a developer to integrate the infrastructure into your online store.
Another is digital wallets; Digital wallets have a bright future in Nigeria. Startups like ChipperCash, building solutions specific to African merchants, can win against global superpowers like Google Pay and Apple Pay that allow customers to pay with a tap of their phone using near-field communication (NFC) technology. Generally, digital wallets are faster and more convenient for consumers although the relatively high charges to businesses have slowed their adoption.

Cryptocurrency is another way for business to receive payments as teams who will win in the future must allow customers to pay however they want. The growth of blockchain and the adoption of cryptocurrency allow consumers to hedge against inflation and fluctuations of fiat currencies. Businesses that would enable customers to utilise this in the real world will attract more customers and win over the competition. Coinbase and Bitpay are popular global cryptocurrency payment gateways that businesses can integrate with to start receiving payments. In Nigeria, a few exciting startups such as Cryptopay are building infrastructure to allow local businesses receive cryptocurrency as a form of payment.

The digital age is here, and the time to adapt to these new technologies is now. Nigeria is a rather large market with many people using their smartphones as their primary device, making digital payments easier than ever. If you have not yet integrated digital payment systems into your business, you are losing out on thousands of customers who might just require your products or services. Try one of the three ways highlighted above. It’s a great way to keep up with the times and diversify your offerings.