In business, giving your customer more choice can increase sales. This is more noticed with the introduction of Cashless/Cashlite Policy by the Central Bank of Nigeria. To really reap profit online, businesses need to give their customers a wide choice on how they pay for goods and services ; so that when they see what they like they would just select and pay for it immediately before they change their mind and divert the money to something else. Being able to take secure online Debit/Credit card and electronic cash payments gives your visitors more chances to buy – after all, why go to the expense of getting a customer only to find you can’t take their money when they want to pay you?
As sweet as it is, sometimes installing online payments facilities can be fairly complex, because there are plenty of options on offer in Nigeria. These range from purse-friendly basic services to one-stop-shop solutions with strings attached (usually higher fees and a longer time to wait before you see your money). And what suits one business may be problematic for another.
It’s important to find a payment solution that suits you. For example, at ediaro.com, we have used various online payment processors in the Past. We were formerly using 2Checkout to accept Local and International transaction, but they only release money every Thursday, their rates were quiet high and their terms and condition didn’t make it easy for us to sell some of our products and services on our website – hence it became unsuitable for our Business. GTBank GTPay were said to be doing great practically, but gave us serious complications when we want to integrate it to Interswitch and they only support Nigerian Bank issued cards.
Meanwhile, with the introduction of the UBA UCollect – their payment gateway supports local and international cards and also clear the money Directly to our UBA Bank Account here in Nigeria. In addition, the UBA UCollect has a user-friendly interface, easy to configure backend – and can even be configured to blend with our site colour, more multiple currencies supported (that’s because it provides four currencies as standard – hence you can charge in Naira, Pounds Sterling, Euros and US Dollars all within one account), online security and good customer relations of the UBA eBanking Unit nudged me to make my choice. Even better, we later sign an MOU with the Bank to develop FREE simple eCommerce for their customers and integrate the UBA UCollect to enable them accept online payment, hence both the Bank new and existing customers can setup a live merchant website easily and FREE thru us at ediaro.com (though customer will pay for the Domain, Web Hosting and SSL) and you’ll start accepting payment online in no time”.
Evidently it’s wise to shop around before making your final choice of which payment processor you’ll use to accept payment. Here are the choices of payment processors available in Nigeria:
If your business already accepts Debit/Credit card offline, setting up an online merchant account should be relatively painless. To qualify you must meet certain cafeterias set by the Bank.
If you’re just starting up a Small Scale business, achieving merchant account could be a bit more expensive – as you’ll have to incorporate a company or Business Name (with the Corporate Affairs Commission) and open a corporate account with the Bank- which can take longer time to complete the process.
The major reknowned ‘acquiring’ banks that provide merchant account services includes:
- Guaranty Trust Bank Plc (GTBank GTPay) – www.gtbank.com .
- United Bank for Africa Plc (UBA UCollect Webpay) – www.ubagroup.com .
- Zenith Bank (ZENITH BANK GlobalPAY) – www.zenithbank.com .
The ‘acquiring’ bank receives your money from the customer, processes the transaction and credits your account. Each of these acquiring banks is able to issue online traders with an Online Merchant ID, allowing them to take credit and debit card payments.
Payment Service Provider (PSP)
A payment Service Provider (PSP) is the alternative for businesses that have trouble getting a merchant account. PSP’s collect card details online and pass them on securely to an acquiring bank to process. When you use PSP, you can pay slightly higher fees or at times the same with merchant status.
Payment service providers in Nigeria includes:
- SIMPLEPAY (www.simplepay4u.com)
- VOGUEPAY (www.voguepay.com)
- CASHENVOY (www.cashenvoy.com)
- Among others, visit our review of Top 10 Online Payment Processing Platforms in Nigeria to learn more.
It has been observed that banks prefer you to use a PSP even if you do have a merchant account, because it’s safer for them to authorise a small number of PSP’s than rely on each trader to be secure. So if you can’t get a merchant account, PSP’s are ideal. The catch is that you might pay slightly higher fees or most time the same charges like merchant account status, and can wait longer for payment.
As a professional ecommerce website development company, the best advise we can give is to be sure to weigh up the pros and cons of each payment service option before launching forth into the world of e-commerce. And don’t forget that you can always start small with a solution, and then upgrade to a higher-volume solution as sales increase. Your website designer / web developer should be able to advise you on this. If not, contact ediaro.com Professional Webcentre Team for all website and eCommerce web designers and web re-developers via – firstname.lastname@example.org, 08060644044, 08090644044.
Be Sociable, share this article with your family and friends – by clicking on the logo of your preffered social network below (Facebook, Twitter, Google Plus & LinkedIn)