Economy
How to Choose an Online Payment Solution as a Nigerian Business
The last decade has seen the profuse digitization of the African business ecosystem.
Digital adoption is even more aggressive in Nigeria as more customers prefer the convenience of transacting business from the comfort of their homes (and smart devices), paying online.
From shopping for clothing to groceries to even betting, very few savours the traditional rigours of queuing up at a physical store, knowing it could all be conducted online.
What does this mean for Nigerian businesses? You would be financially handicapped if you don’t jump on the cashless bandwagon and integrate online payment solutions into your services.
The next question you would want to ask is what parameters you should consider when selecting a payment gateway.
What are the most critical considerations when picking a payment gateway?
We are talking about money here, aren’t we?
If yes, there is no way we can overemphasize the need for diligence when selecting a payment gateway.
Don’t forget that your customer’s payment experience significantly determines if they would do business with you – or even come back after the first transaction.
Below are the core parameters your chosen payment gateway must possess.
Versatility
If the customer is king, then you must give your buyers all the royalty they deserve by integrating payment gateways that work with a broad spectrum of payment methods.
The contemporary Nigerian has debit cards, with the younger fraction fast adopting more digital wallets.
Choose a payment gateway that is minimally discriminatory and works with a vast number of payment methods Nigerian banks offer their customers.
Security
Some decades ago, hacking was more of an American and European malady. The average African internet user didn’t have to worry about his online security.
Much has changed now, as cyber vandals furiously cast their nets online for Nigerian victims. You don’t want to expose your customers to cyber vulnerabilities when they make payments on your website.
This is why you need a payment processor that prioritizes security. Today, the best payment gateways are decked with cutting-edge encryption to make life extremely miserable for hackers.
Formidable apparatus is now being set up in Nigeria, as seen in domestic cybersecurity compliance protocols. Ensure your chosen solution religiously adheres to guidelines prescribed by the office of the NSA.
Speed
It was back in the days of our elders that slow and steady won the race. In a 21st-century Nigerian business landscape, customers want it fast and furious – and rightly so.
Few things can be as appalling to your customers as their online payment taking too long to process on your website.
Choose a payment gateway that boasts top-notch transaction execution speed. And as further icing on the cake, it would help to choose a gateway that will not charge your customers an arm and leg in transaction fees.
No one enjoys paying alarming fees for buying things from you. They will likely not come again if it happens.
Mobile compatibility
You would be mistaken to underestimate the fanaticism of Nigerian youth with mobile devices. The frenetic rave about the latest iPhone phones should adequately educate you on how much your customers love smartphones.
The chances are high that the majority of your Nigerian customers transacting online payments on your website are doing so via their mobile devices.
Therefore, when choosing a payment gateway, choose one that is sufficiently optimized for mobile users.
The payment processor should be fast, fluid, and responsive when customers deploy it on their smartphones.
That said, we have proudly observed the permeation of the Nigerian online space with native fintech solutions. Indigenous payment solutions like Paystack, Flutterwave, and PayU are extensively streamlined to the unique characteristics of the Nigerian business environment.
More than being easy and cheap to install, these payment methods are scalable. This means you pay only for what you use and can ramp things up flexibly as you grow.
It is also interesting to note that the likes of Flutterwave work with more currencies aside from the naira. This opens you to prosecuting international transactions without breaking a sweat.
Not bad, is it?
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Wednesday, August 5, as the market witnessed weaker trading activity with only two deals executed.
In the midweek session, the volume of securities exchanged by investors dropped 99.9 per cent to 802 units from the 1.6 million units recorded on Tuesday. The value of securities further decreased by 99.6 per cent to N208,240 from the preceding session’s N47.6 million, and the number of deals significantly went down by 93.9 per cent to two deals from the 33 deals recorded a day earlier.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 76.9 million units transacted for N5.5 billion.
GNI Plc was also the most active stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
There were no price gainers or losers yesterday.
As a result, the market capitalisation stood unmoving at N2.739 trillion, while the NASD Security Index (NSI) remained unchanged at 4,563.96 points.
By Adedapo Adesanya
The Naira slid against the US Dollar by N2.28 or 0.17 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, August 5, to N1,363.85/$1 from N1,362.55/$1.
The local currency also declined against the Pound Sterling in the official market during the session by N5.97 to close at N1,837.38/£1 compared with Tuesday’s closing rate of N1,831.41/£1, and against the Euro, it crashed by N6.54 to quote at N1,575.25/€1 versus the preceding session’s N1,568.71/€1.
But at the black market, the Nigerian Naira traded flat against the greenback yesterday at N1,400/$1, and also remained unchanged at the GTBank FX desk at N1,373/$1.
The Central Bank of Nigeria (CBN) says rates have narrowed to below two per cent, while the country’s external reserves have risen above $52.5 billion, reflecting the impact of its ongoing monetary and foreign exchange reforms.
CBN Governor Yemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Mrs Hakama Sidi-Ali, disclosed this on Tuesday during the CBN Fair in Gombe. He noted that reforms introduced since 2023 had significantly reduced the disparity between the official FX market and the parallel market.
“The Naira continues to strengthen, with the spread between official and Bureau de Change rates now below two per cent,” he said, adding that reserves at $52.5 billion were supported by sustained inflows and renewed investor confidence in the economy.
Interbank FX transactions slid as weaker market activities dropped total Dollar volume exchanged to $75.35 million, a 51.8 per cent decline from $156.23 million in turnover quoted at the previous close.
The deals at the NFEM window also fell as data from the central bank put Wednesday’s quote at 82 from 139.
In the cryptocurrency market, major were down as global risk sentiment softened as a key world equity index slipped and chipmakers fell.
The MSCI All Country World Index snapped a five-day run to fall 0.2 per cent as chipmakers retreated on both sides of the Pacific. South Korea’s Kospi, a bellwether for the AI trade, dropped 4.4 per cent.
Ripple (XRP) depleted by 1.7 per cent to $1.05, Binance Coin (BNB) decreased by 1.0 per cent to $594.87, Cardano (ADA) depreciated by 0.9 per cent to $0.1884, TRON (TRX) shrank by 0.2 per cent to $0.3261, Solana (SOL) crumbled by 0.1 per cent to $74.00, and Dogecoin (DOGE) went down by 0.1 per cent to $0.0697.
On the flip side, Ethereum (ETH) gained 2.3 per cent to trade at $1,911.41, and Bitcoin (BTC) rose by 0.8 per cent to $64,759.28, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
The domestic stock exchange rebounded by 0.05 per cent on Wednesday on the back of renewed bargain-hunting by investors, though the level of activity waned.
After bleeding for a few days, the Nigerian Exchange (NGX) Limited heaved a sigh of relief yesterday, as the All-Share Index (ASI) gained 109.41 points to close at 244,912.24 points compared with the previous day’s 244,802.83 points, and the market capitalisation garnered N71 billion to settle at N158.087 trillion versus Tuesday’s N158.016 trillion.
Business Post reports that despite the rebound recorded by Customs Street at midweek, the market breadth index remained negative, as there were 20 price advancers and 29 price decliners, implying bearish investor sentiment.
Linkage Assurance appreciated by 9.94 per cent to N1.77, AVA Capital rose by 9.55 per cent to N10.90, Fortis Global Insurance advanced by 7.69 per cent to N2.80, McNichols gained 7.34 per cent to finish at N5.85, and Coronation Insurance surged by 5.51 per cent to N2.49.
Conversely, Honeywell Flour depreciated by 9.94 per cent to N16.30, PZ Cussons gave up 9.94 per cent to trade at N74.75, Zichis crashed by 9.74 per cent to N20.76, Learn Africa slipped by 9.62 per cent to N9.40, and Neimeth tumbled by 8.33 per cent to N8.25.
The busiest equity was FCMB, with a turnover of 369.2 million units valued at N4.1 billion. Chams transacted 46.7 million units worth N201.8 million, First Holdco transacted 43.5 million units for N5.7 billion, Access Holdings sold 29.8 million units worth N778.0 million, and Linkage Assurance exchanged 19.6 million units valued at N33.5 million.
At the close of transactions, market participants bought and sold 824.1 million units worth N25.5 billion in 48,114 deals, in contrast to the 1.6 billion units sold for N28.7 billion in 54,160 deals a day earlier, showing a shortfall in the trading volume, value, and number of deals by 48.49 per cent, 11.15 per cent, and 11.16 per cent, respectively.
