Paystack, a Nigerian fintech company owned by Stripe, has launched a new feature that allows merchants to receive payments directly from millions of OPay accounts. The integration marks the latest step in Paystack’s strategy to build bank transfer-based payment methods that will account for more than 50% of transactions in 2023.
The move reduces reliance on more expensive debit card transactions. “Pay by OPay” allows customers to pay merchants via the OPay app or web interface as part of a network that already includes 24 Nigerian banks and fintechs such as PalmPay and Kuda.
Paystack first introduced the bank transfer payment option in 2017 and has grown to 13% of transactions processed by the fintech by 2021. This is because the adoption of electronic payments in Nigeria has accelerated in recent years due to a variety of factors.
The Central Bank of Nigeria’s cashless policy, introduced in 2012 and expanded in 2020, promoted digital payments by introducing limits on cash withdrawals. The COVID-19 pandemic further shifted consumer behaviour to digital platforms as lockdowns made physical transactions impractical.
And in 2023, a nationwide cash shortage due to the redesign of the naira forced many Nigerians to turn to fintech solutions such as OPay as traditional banks struggle to keep up with the surge in online transactions.
Paystack claims that its OPay integration will deliver a near-perfect transaction success rate of 99.99%, strengthening its role in supporting Nigeria’s growing preference for electronic payments. Paystack also partnered with the Nigerian Interbank Settlement Scheme (NIBSS) in 2023 to enable direct debits, expanding choice for businesses and consumers seeking reliable, cost-effective digital payment solutions.
