Nigerian fintech firm Paystack has partnered with Opay to launch a new payment feature in honour of Stripe. This integration enables merchants to collect payments directly from millions of OPay accounts, making it cheaper and more effective than traditional methods.
The integration is based on Paystack’s “pay with bank transfer” feature, which the company launched in 2017. This option allows customers to pay the experimenting merchants directly through their bank balances without necessarily using debit cards.
Despite initially growing at a slower pace than other methods, “Pay with Bank Transfer” became the most dominant payment method on Paystack’s gateway by the end of 2023, contributing over 50 per cent of the total payments, up from less than 13 per cent in 2021.
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With the OPay integration, customers can pay online either through the OPay application or through www.opay.com. This method eliminates other costs associated with card transactions, slashing merchant costs and providing customers with a secure method of payment.
“You must offer your customers payment options that they are already comfortable with,” said Shola Akinlade, the CEO of Paystack. OPay grew to prominence during the cash shortage in 2023 when many Nigerians had to turn to fintech, and most brick-and-mortar banks failed to fulfil their transactions.
How this helps businesses and customers
The “Pay by OPay” feature benefits both merchants and individuals in several ways:
For businesses:
Lower costs: Credit card acceptance can be costly for merchants, a major cost it cuts down on.
Higher success rates: The feature boasts a 99.99 per cent transaction success rate, meaning there are fewer chances of payment failures and a happy customer base.
Customer Confidence: Partnering with an accredited brand such as OPay fosters trust, which ensures customers will return.
For customers:
Ease of use: These can be made through the OPay app or the web version, and it is effortless to do so.
Reliability: Since OPay has previous experience handling financial transactions seamlessly, unlimited transactions will go well even during peak periods.
Cost savings: Payments do not include additional costs, which are feasible when using cards to pay.
As an integrated payment and super-app, OPay has come on board to provide businesses with a payment solution that meets the existing and rapidly evolving Nigeria’s digital economy within their offering of Paystack. Paystack is also opening up its services for other businesses across Nigeria Through integration with other apps such as PalmPay, Kuda Bank, and twenty-four of Nigeria’s commercial banks.
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A step toward more innovative payments
In simplifying payment systems, they have made a step towards smarter payment. This integration of Paystack with OPay is the new way of achieving more efficient payment methods in Nigerian businesses.
With a specific emphasis on direct payments and a high transaction success rate, Fintech enables business owners to deliver more valued customer solutions while reducing costs.
Therefore, companies operating in Nigeria’s complex environment should adopt a solution like “Pay by OPay.” While this specific partnership improves payments, it also helps construct a more stable, integrated financial future.