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Your Guide to Online Payment in Nigeria: Types, Comparisons and How they Work

Years ago, before the age of online payments in Nigeria, most purchases were paid using physical cash and funds transfers required you to fill a physical deposit or withdrawal slips and join long queues in the bank in order to complete your transactions. Today, however, the rise of real-time electronic payment technology has dramatically transformed the financial industry in Nigeria, enabling consumers to make quick and convenient transactions using a variety of payment cards, mobile payment apps, and internet banking apps.

In fact, when it comes to online payments, Nigeria is reported to have recorded 3.7 billion real-time transactions just in 2021, ranking the country sixth among the world’s most developed real-time payments.

In this article, we’ll spotlight the major types of online payments available in Nigeria today, how each works and how they compare against each other.

Types of Online Payments in Nigeria?

Debit & Credit Card

Card payments are one of the most popular online payment options in Nigeria and come in different forms like debit cards, prepaid cards, gift cards and credits card. Cards are widely accepted and can be used for various payment types, from POS payment at a supermarket to ordering items from an online store.

Direct Bank Debit

This form of payment allows an automatic withdrawal or transfer of funds from your account to another party. A good example is when you authorise monthly auto-withdrawals for charity donations, utility bills or a loan you are paying off.

Digital Wallets

Digital wallets are mobile payment solutions that enable complete instant transactions using a phone-based app. Like a physical wallet, a digital wallet securely stores your card information and bank details for as many accounts as you wish enabling you to make faster digital payments or send and receive funds. Some digital wallets also allow you to move funds from your card or bank account to be saved directly on the digital wallet platform for future transactions.

Mobile/Internet Banking

This payment solution is usually provided by your bank and allows you to complete everyday bank transactions from the comfort of your mobile bank app or on your computer. With mobile or internet banking, you can transfer funds, top-up airtime or data, pay bills, set up automated debits or begin a savings plan. The difference between mobile banking and internet banking is that the former requires you to download an app provided by your bank while your internet banking platform is accessed via a simple web browser.

Types of Online Payments in Nigeria Compared?

S/N Debit & Credit Card Direct Bank Debit Digital Wallets Mobile/Internet Banking
1 Card-based Bank-based Mobile-based Mobile/Internet-based
2 Payment is made at the swipe of a card Payment is automatically debited from your bank account Payment is made by a tap on your mobile app Payment is manually completed from your bank app or online
3 Managed by a card scheme e.g. VISA, MasterCard Managed by your bank Usually managed by a third-party payment company Managed by your bank

Best Platforms for Online Payment in Nigeria?

When choosing an online payment solution, it is important to consider how secure the platform is as well as the convenience and ease of use.  Using these two criteria, we recommend these two platforms as among the best for online payment in Nigeria: and Naira Plus.

1. Naira.Com enables you to fulfil everyday transactions like bill payments, sending and receiving funds, and airtime top-up. You can also pay donations to your preferred non-profit through the platform.

Why do we recommend it?

  • Instant transactions
  • Bill payments are available for PHCN, DSTV, Startimes, Swift etc.
  • Easy to use
  • Allows you to send and receive

2. Naira Plus

Naira Plus is a corporate electronic payment platform that provides e-collection services and allows businesses to perform bulk payments to their financial institutions.

Why do we recommend it?

Connects financial institutions and non-financial institutions

Industry-standard security compliance


Digital solutions will continue to transform how payments and financial transactions happen in Nigeria, with newer and better solutions emerging in the coming years. While we enjoy the benefits that come with convenient online payment in Nigeria, remember to keep your financial information and use platforms that you can trust.


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