Paystack, the Stripe-owned Nigerian fintech, has launched an integration allowing merchants to accept payments directly from millions of OPay accounts. This move builds on Paystack’s successful strategy of reducing reliance on debit cards by offering payment methods based on direct bank transfers.
Simplifying Transactions with OPay Integration
The new “Pay by OPay” feature enables customers to make payments through the OPay app or web interface. This eliminates the need for debit cards, which often carry higher transaction fees that inflate costs for merchants and consumers.
“It’s important for businesses to offer payment methods that their customers know and trust,” said Shola Akinlade, CEO of Paystack.
OPay’s integration complements Paystack’s existing connections with 24 Nigerian commercial banks and fintechs like PalmPay and Kuda, ensuring merchants can receive payments through various platforms.
Why OPay?
OPay became a popular payment option during Nigeria’s cash crunch in 2023, gaining trust as traditional banks struggled to handle surging online transactions. This trust makes OPay a strategic partner for Paystack, which promises a 99.9999% transaction success rate for customers using the platform.
Growth of Bank Transfer Payments
Paystack’s focus on bank transfers began in 2017 with its “pay with bank transfer” feature. Initially accounting for 13% of transactions in 2021, bank transfers grew to over 50% of Paystack’s total transaction activity by 2023, reflecting a strong shift away from card-based payments.
Expanding Cardless Payment Ecosystem
The integration with OPay is part of a broader effort by Paystack to provide seamless, trusted payment solutions. Earlier, Paystack partnered with the Nigeria Inter-Bank Settlement Scheme (NIBSS) to launch direct debits, enabling customers of most Nigerian banks to pay merchants directly from their accounts.
Impact on Nigerian Businesses
The integration offers businesses a competitive edge by providing customers with familiar, trusted payment methods. This can lead to higher transaction success rates, reduced costs, and improved customer satisfaction.
What’s Next for OPay and Paystack?
“OPay will continue to build on its strength, which is modern technology, to provide our customers with cutting-edge financial service offerings,” said Dauda Gotring, Managing Director of OPay.
With this integration, Paystack and OPay are advancing Nigeria’s transition to a more seamless, cost-effective, and reliable payment ecosystem, further positioning themselves as leaders in the fintech space.