Paystack, a Nigerian fintech company and subsidiary of Stripe, has integrated OPay, enabling merchants to receive payments directly from millions of OPay accounts.
With this, Paystack will continually enhance payment solutions for businesses by prioritising direct bank transfers over traditional card-based transactions, which are often costlier for consumers and merchants alike.
The new “Pay by OPay” feature allows merchants to accept payments seamlessly through OPay’s app or web interface, complementing Paystack’s existing integrations with 24 Nigerian banks and other fintech platforms like PalmPay and Kuda.
This development will also drive offerings for businesses to get more reliable and diverse payment options. Paystack CEO Shola Akinlade noted the importance of providing payment methods familiar to customers, reiterating OPay’s rise as a trusted payment platform during Nigeria’s 2023 cash crunch, which saw many consumers shift to fintech solutions due to banking disruptions.
The collaboration between Paystack and OPay also aims to deliver an exceptionally high transaction success rate, with Paystack claiming a 99.9999% reliability metric.
This aligns with the goal of OPay to leverage modern technology in delivering advanced financial services, as highlighted by its Managing Director, Dauda Gotring.
Paystack’s shift toward bank transfers as a primary payment method dates back to 2017 with the introduction of its “Pay with Bank Transfer” feature.
This approach has seen exponential growth, with such transactions accounting for over 50% of its total processing volume in 2023, up from just 13% in 2021.
Additionally, Paystack recently partnered with the Nigeria Inter-Bank Settlement Scheme (NIBSS) to introduce direct debit functionality, further simplifying how customers of most Nigerian banks can make payments.
The integration with OPay strengthens Paystack’s place in the fintech sector while enhancing payment flexibility for Nigerian businesses.
The partnership comes at a time when both companies are riding on market achievements. OPay, which launched in 2018, has expanded its services to include ride-hailing, digital banking, and food delivery, and is now valued at approximately $2 billion.
Similarly, Paystack continues to deepen its roots in the African fintech sector while exploring more opportunities under Stripe’s ownership
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