Paystack, the Nigerian fintech owned by Stripe, has enhanced its payment options by integrating with OPay, enabling merchants to accept payments directly from millions of OPay accounts. This development aligns with Paystack’s commitment to building payment solutions based on bank transfers, which accounted for over half of its transactions in 2023.
The integration eliminates the need for debit cards, traditionally used as intermediaries between merchants and consumers, which often add extra costs to transactions.
Simplifying Direct Account Payments
The new “Pay by OPay” feature allows merchants to accept payments seamlessly through OPay accounts. Paystack’s platform already supports direct payments via 24 Nigerian commercial banks and fintechs such as PalmPay and Kuda. This integration now enables OPay users to pay directly online using the OPay app or web interface.
According to Shola Akinlade, Paystack’s CEO, “It’s important for businesses to offer payment methods that their customers know and trust.”
Leveraging OPay’s Trustworthiness
OPay became a popular payment solution during Nigeria’s 2023 cash crunch, as many Nigerians turned to fintech platforms when traditional banks struggled with the surge in online transactions. With this integration, Paystack promises customers an impressive 99.9999% transaction success rate.
Paystack’s journey toward streamlining payments began in 2017 with the introduction of the “Pay with Bank Transfer” option, which allowed customers to complete transactions without debit cards. This payment method grew from less than 13% of Paystack’s total activity in 2021 to over 50% by the end of 2023.
The company further collaborated with the Nigeria Inter-Bank Settlement Scheme (NIBSS) in 2023 to roll out direct debits, allowing payments directly from most Nigerian bank accounts.
A Vision for Financial Innovation
Commenting on the partnership, Dauda Gotring, Managing Director of OPay, stated, “OPay will continue to build on its strength, which is modern technology, to provide our customers with cutting-edge financial service offerings.”
This collaboration reflects a shared vision between Paystack and OPay to create innovative, cost-effective, and trusted payment solutions for businesses and consumers alike.
