The Best 10 Payment Gateways in Africa

I don’t know about you but I will unapologetically leave a store that only accepts cash if I have none on me. Why stress myself looking for cash when I can easily make a transfer elsewhere? We humans are all about convenience, and the digital age has made that a reality. 

It’s no secret that technology has completely changed the way we handle payments in Africa. With the rise of online transactions, businesses all over the continent need secure ways to accept payments. Luckily, there’s a growing number of payment gateways stepping in to fill that need. 

But with so many options out there, it can be hard to decide which payment gateway to use. That’s where this article comes in. I’ll explore the top 10 payment gateways in Africa, covering their features, advantages, and disadvantages, to help you find the perfect fit for your business.

What Are Payment Gateways?

Payment gateways are secure online platforms that act as intermediaries between businesses and customers during online transactions. They essentially act as bridges allowing you, the customer, to pay the business you’re buying from.

When you buy something online, these gateways are the ones that securely process your payment from your bank to the seller. They make sure your payment information is safe and that the transaction goes smoothly. Some popular payment gateways in Africa include Interswitch, Paystack, Flutterwave, among others. 

Top 10 Payment Gateways in Africa

Now that you understand what payment gateways are, let’s talk about some of the best payment gateways in Africa. 

Here are 10 of the top payment gateways available in Africa:

1. Flutterwave
2. Paystack
3. Interswitch 
4. Remita
5. Seerbit
6. Monnify
7. Squad
8. Kora
9. VoguePay
10. DPO

1. Flutterwave

Flutterwave is a payment gateway founded in 2016. It allows businesses to accept online and offline payments from customers across 33 African countries and beyond. 

Features

• Multiple payment methods: It supports various payment methods like debit/credit cards, mobile wallets, and bank transfers.
• Subscription management: It enables businesses to manage recurring payments.
• Fraud detection and prevention: Flutterwave employs advanced security measures to safeguard transactions.

Pros

• Widely accepted and easy to use
• Robust security features 
• A wide array of features

Cons

• The pricing structure might be complex for smaller businesses.

2. Paystack 

Paystack was established in 2015 and quickly became one of the leading payment gateways in Nigeria. It is known for its ease of use and integration. In 2020, Paystack was acquired by the American payments company, Stripe. 

Features 

• Simple integration: It has a streamlined integration process for websites and apps.
• Instant settlements: You can receive payouts directly into your bank account within 48 hours.
• Transparent pricing: The pricing structure is straightforward with no hidden fees.

Pros

• User-friendly 
• Fast settlements
• Transparent pricing

Cons

• It is limited to a few African countries. 

3. Interswitch

Interswitch is one of the oldest payment gateways in Africa, founded in 2002. This payment gateway which has its headquarters in Nigeria offers a comprehensive suite of payment solutions. 

Features

• Verve card network: Interswitch issues Verve debit and prepaid cards widely accepted across Africa.
• Quickteller platform: This enables bill payments, airtime top-up, and money transfers.
• Payment gateway solutions: Interswitch supports online and offline payments for businesses.

Pros

• Extensive network
• Diverse product offerings
• Strong presence in Nigeria

Cons

• Its merchant fees might be higher compared to some competitors.

4. Remita

Remita is a payment gateway launched in 2005 by SystemSpecs, a Nigerian software company. It is focused on facilitating payments to the government and its agencies. This payment gateway is also used by a lot of tertiary institutions in Nigeria. 

Features

• Bill payments & Tax remittance: Remita simplifies the process of paying bills and fees to institutions and government agencies.
• Bulk payment options: It enables efficient management of multiple payments at once.
• Payment status tracking: It allows users to track the status of their payments in real-time.

Pros

• Secure and reliable 
• Wide range of services

Cons

• It is limited to specific use cases, and not ideal for general e-commerce transactions.

5. Seerbit

Seerbit is a relatively new payment gateway that aims to simplify digital payments in Africa. It was established in 2016, and this pan-African payment gateway offers online and offline payment solutions for businesses.

Features 

• Multiple payment method acceptance: Seerbit supports various payment options like cards, mobile wallets, and bank transfers.
• Virtual account generation: It enables businesses to create unique accounts for receiving payments.
• White-label payment gateway solutions: It allows businesses to customize the payment experience with their branding.
• Subscription management: It facilitates recurring billing for subscription-based businesses.

Pros

• Diverse features
• Facilitates recurrent billing
• White-label solutions for customization

Cons

• It is a relatively newer player compared to some competitors.

6. Monnify

Monnify is a payment gateway founded in 2019 that focuses on providing seamless payment solutions for businesses in Nigeria. This payment gateway is a product of Moniepoint, a fintech company in Nigeria. 

Features 

• Multiple payment methods: Monnify supports various options like debit/credit cards, USSD mobile money, and bank transfers.
• Flexible settlement options: You can choose between daily, twice daily, or instant settlements for received funds.
• Recurrent billing: You can manage and automate recurring payments for subscriptions or memberships.
• Real-time transaction monitoring: You can track and monitor all transactions happening on your account.

Pros

• Flexible settlement options
• Recurrent billing support

Cons

•  It is a relatively new player in the industry. 

7. Squad

Squad is a payment gateway that offers a range of financial services, including payments, loans, and savings. It was launched in 2022 by HabariPay, a subsidiary of Guaranty Trust Holding Company. It aims to empower individuals and businesses across Africa by providing access to financial tools.

Features 

• Seamless integration: You can integrate Squad’s payment gateway with various platforms and marketplaces for a smooth checkout experience.
• Robust security: Squad offers fraud prevention and risk management tools to safeguard transactions.
• Streamlined payment processing: You can accept payments conveniently and efficiently through Squad’s secure platform.

Pros

• Integrates with various platforms
• Robust fraud prevention

Cons

• It is only present in Nigeria. 
• It does not support recurring billing. 

8. Kora

Founded in 2016, Kora is a pan-African payment gateway with a presence in Nigeria, Canada, the UK, and Europe. It aims to overcome barriers to financial inclusion by offering low-cost, accessible payment solutions. 

Features 

• Zero setup fees: Unlike some competitors, Kora eliminates upfront setup fees, potentially reducing initial costs for businesses.
• Competitive fees: Kora transaction fees are capped at N2000, making it potentially cost-effective for businesses.
• High success rates: They boast a high success rate, particularly for bank transfers, ensuring smooth transactions for your customers.

Pros

• No setup fees
• Competitive fees
• Secure and reliable 

Cons

• There’s limited information available on its features compared to some competitors.

9. VoguePay

VoguePay was founded in 2012. It is a Nigerian payment gateway catering to businesses in Africa and beyond. It can be used to accept payment from anyone, anywhere in the world 

Features 

• Support for multiple payment methods: It allows payments through cards, mobile wallets, and bank transfers, providing flexibility for your customers.
• Sales and store reports: You can gain valuable insights into your sales performance through comprehensive reports.
• Third-party plugin compatibility: You can integrate VoguePay with various third-party tools and platforms to enhance your online store’s functionality.

Pros

• Established player
• Instant settlements for some transactions

Cons

• It might not offer the most competitive fees compared to newer players.

10. DPO

Direct Pay Online, commonly known as DPO,  is a payment gateway with a presence in several African countries. It was founded in 2006 and provides online payment solutions for businesses, including e-commerce platforms, airlines, and hotels.

Features 

• Multiple payment method acceptance: DPO caters to a wide range of payment options, like cards, mobile wallets, etc.
• Support for various currencies: DPO allows you to accept payments in different currencies, simplifying transactions for customers across borders.
• Fraud prevention and risk management: DPO employs security measures to safeguard your transactions and protect against fraud.

Pros

• Wide geographic reach
• Support for diverse payment methods and currencies

Cons

• It might have complex pricing structures for some users.

Factors To Consider When Picking Payment Gateways in Africa

Before you go ahead to choose a payment gateway to serve your business, there are some factors you should consider. You should take into consideration factors like transaction success rate, cost, security, settlement time, and payment options before making a decision. 

1. Success rate of transactions: You want a payment gateway that makes sure your transactions go through smoothly. So, it’s important to check how often transactions are successful with the gateway you’re considering.
2. Cost: Different payment gateways have different costs. Some charge a flat fee per transaction, while others may have a percentage fee based on the transaction amount. Make sure to consider how these costs will add up for your business.
3. Security: Keeping your customers’ payment information safe is crucial. Look for a payment gateway that uses encryption and other security measures to protect sensitive data.
4. Settlement time: This is how long it takes for the money from a transaction to reach your bank account. Faster settlement times can help manage cash flow in your business. So, look for a payment gateway with proven fast settlement time. 
5. Payment options: Make sure the payment gateway supports the payment options your customers prefer. Whether it’s credit cards, debit cards, or alternative payment methods like digital wallets, you want to offer the flexibility of different options to your customers.

Conclusion 

In a nutshell, picking the best payment gateway for businesses in Africa is a big deal. Each of the top 10 payment gateways discussed offers unique features and benefits tailored to the diverse needs of businesses and consumers across the continent.

In addition, by considering the factors discussed above, businesses can make informed decisions and pick the most suitable payment gateway for them.