Importance of Payment Collection
Payments are crucial parts of businesses today. When businesses offer goods and services, they in return receive payments for what they have offered. Any hindrance to payment collection is dangerous to the survival of any business. Back in the days, it was all cash payments. But with help of technology, businesses can now take payments in digital forms. Hence the need for payment collection channels or suitable gateways.
PAYMENT GATEWAYS
A payment gateway is any technology asset used to facilitate online or electronic payments between payers (customers) and businesses. And there are many functions embedded in that simple definition:
1. User Authentication: the gateway must be able to authenticate the payer as the real authorised owner of the source paying account
2. Accuracy & Integrity: The gateway must also ascertain and ensure the accuracy and integrity of information and data supplied and processed.
3. Transaction: the gateways, upon authentication, must be able to take money from the payer's account on behalf of the business.
4. Remittance: the gateway must be able to remit the paid sum to the designated account of the business.
5. Security: the gateway must also be able to keep data secure, be it of the payer or the payee.
In this light, there are some names of payment gateways already operating in Nigeria that you may want to choose from, based on the factors mentioned below:
Seerbit, Remita, Paystack, Monnify, Flutterwave, Monnify and Interswitch.
DETERMINING FACTORS OF GATEWAY EFFECTIVENESS
There are things to watch out for when trying to choose the best gateway suitable for your business. These include, but not limited to:
1. The Cost Implications
Every payment gateway has setup and/or transaction fees associated with their business. The costs of using the gateway must be something your business can accomodate. Truth is that each gateway has different pricing models. Possible associated costs include setup fees, transactions charges and monthly maintenance fees. So, you do well to compare and contrast before making a choice.
2. Settlement Window
The length of time between when a gateway receives payment from a customer and when the payment is credited to your company account is the Settlement Window or Time. This period ranges from 1 day to a week. Needless to say, the shorter the time, the better for the business. So, choose those with shortest time so you can have access to your money on time.
3. Payment Success Rate
This is one reason you need to know what previous or existing users of the gateway are saying. Success rate of payments refers to the percentage of successful payments as against failed transactions. The higher the success rate the better for your business.
4. Fuller Options
The more the options available for your customers, the better for your business. The payment methods expected are cards (MasterCard, VISA, Verve?), also trabsfer, USSD, QR, transfer and Internet banking. Also, what currencies are accepted?
5. Reputation
Stemming from past record and reports, the reputations of payment gateways matter. You don't want to partner with a gateway that has been blacklisted as fraud easing. Or that is having regulatory problems abd compliance deficiencies. You would want to partner with a company that knows its onions.
6. Security
Security is of great importance in this line of business. The best payment gateways of 2024 must be one that guarantees Security of their infrastructure and your business as well as your customers' data.
With these in mind, let me do brief overview of the major payment gateways on Nigeria for 2024.
1. Seerbit
SeerBit is a payment gateway that provides products and infrastructure that allow you collect payments from your customers across Africa.
Website is https://www.seerbit.com/
Seerbit delivers:
Online Payments
Accept cards, USSD, bank transfers, direct debit, and more on any digital platform or device
In-Person payments
Enhance your In-store payment experience with a SeerBit Point-Of-Sale set up
Unified Commerce
Connect your online and in-store payment data on one dashboard
Pricing
Seerbit offers: No hidden charges, no surprises. See what you pay on every transaction.
Nigeria
Local Payment Methods
1.5%
Features:
Accept payments via Local Cards, Bank Transfer, USSD, Bank Account, QR
Fees for local cards are capped at NGN 2000 - which means you won't pay more than that.
International Cards
3.8%
Features:
International transactions are settled in your local currency or USD
Enterprise
Customizable
Features:
Flexible pricing based off transaction volumes
2. Monnify
Monnify is a payment gateway for businesses to accept payments from customers, either on a recurring or one-time basis. Monnify offers an easier, faster and cheaper way for businesses to get paid on their web and mobile applications using convenient payment methods for customers with the highest success rates obtainable in Nigeria.
Website is https://monnify.com/
With Monnify, these are how your customers can pay:
USSD Payments
USSD, Mobile and Internet Transfers
Using Monnify, your customers can make payment to you on your website or app by initiating a simple interbank transfer using USSD, internet banking or their mobile banking app.
Cards
Monnify allows you receive payments via debit cards online, while offering the most competitive transaction fees obtainable. Cards can also be tokenized for convenient recurring billing on cards.
Pricing
Monnify promises: Competitive Price. Best Value. Enjoy more benefits while paying below industry rate.
ACCOUNT TRANSFERS
1.5%
Fee is capped at N2000 per transaction.
OR
₦500 Flat rate
VAT Exclusive
CARDS
1.5%
Fee is capped at N2000 per transaction.
VAT Exclusive
ZERO SETUP FEES
ZERO MAINTENANCE COSTS
NO HIDDEN CHARGES
3. Paystack
