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Launching an eCommerce Business? Here’s All You Need to Know about Payment Gateways in Nigeria

Commerce in Nigeria is evolving from physical marketplaces to online shops and eCommerce platforms. With this new form of trading comes the challenge of ensuring that online shoppers can make digital payments for their purchases as securely and smoothly as possible. This is where the importance of payment gateways comes in.

Payment gateways in Nigeria are responsible for processing various digital payments like debit or credit card use, mobile wallets, virtual debit cards, etc. The job of a payment gateway is to authorise, process and confirm a transaction that is initiated when an online buyer checks out and makes a purchase on an eCommerce website or app.

If you’re launching a new eCommerce website, this article will get you familiar with how payment gateways in Nigeria work and how to pick the right one for your shopping platform.

How do Payment Gateways in Nigeria work?

Payment gateways in Nigeria are usually provided as a service by financial technology companies and can either be integrated into the customer checkout page on your eCommerce website or stand alone as a separate page in which your customers are redirected in order to complete payment for their purchase.

Here’s how a payment gateway processes transactions when a customer on your eCommerce site wants to checkout and make a payment:

Step 1: The customer initiates a transaction by checking out on an eCommerce website.

Step 2: The Payment gateway checks with the customer’s bank to ensure required funds are available for the transaction

Step 3: The gateway sends the encrypted payment details to the appropriate card scheme e.g. VISA, MasterCard.

Step 4: The transaction is approved by the card scheme and the customer is redirected to the merchant’s site.

Step 5: The payment gateway sends the information to the merchant’s bank to move the money from the customer’s bank account to the merchant’s account.

What Type of Transactions Can Payment Gateways in Nigeria Allow?

Many payment gateways can accept almost all kinds of digital transactions. Here is a list of the most common transactions that can be completed via payment gateways in Nigeria:

  1. Card Payments
  2. Bank Account
  3. Virtual Account
  4. Virtual Cards
  5. QR Code

It is always good to confirm what payment options are available before selecting a payment gateway to integrate into your eCommerce store. The more options accepted by your chosen payment gateway, the more ease and convenience you give your customers when making purchases in your store.

How Should I select a Payment Gateway for my Website?

When picking a payment gateway for your business, look for the right platform that guarantees your customers a seamless and secure shopping and payment experience. Here are five things to ask before choosing one:

  1. How easy to integrate into your eCommerce store is this payment platform?
  2. Do they have strong technical and customer support available 24/7?
  3. Is the checkout process on the payment platform simple enough for buyers?
  4. Can the platform protect buyers from fraud and security breaches?
  5. What cards and payment options are available on the platform?

What are the best payment gateways in Nigeria?

While there are many financial technology companies with great platforms for businesses, our platform, PelPay is one of the best payment gateways for eCommerce businesses in the country. It is designed to help businesses manage all forms of electronic payments like card payments, bank transfers, mobile wallet payments, QR code payments, etc.

PelPay operates with the highest security standard in the payment card industry including advanced fraud detection technology to protect customers’ data so they can shop with confidence.

Try PelPay today and give your customers a seamless checkout experience on your website.

Visit now!


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