One of the most important decisions you make when setting up your online store is how you will collect payments from customers. The payment gateway you choose determines how easy it is for customers to pay, how quickly money gets to you, and how much you pay in transaction fees.
This guide breaks down the most popular payment gateways in Nigeria for online sellers so you can understand your options clearly.
What Is a Payment Gateway?
A payment gateway is the technology that processes payments on your online store. When a customer clicks "pay now" and enters their card details or initiates a bank transfer, the payment gateway handles the transaction securely behind the scenes — verifying the payment, processing the funds, and confirming the order.
Most people in Nigeria know companies like Paystack and Flutterwave as payment apps or brands, but their primary function as businesses is operating payment gateways that power checkout pages for online stores, websites, and apps.
Paystack
Paystack is one of the most widely used payment gateways in Nigeria and across Africa. It was acquired by Stripe — the global payments giant — in 2020 and has since expanded significantly.
Paystack allows businesses to accept payments via card, bank transfer, USSD, mobile money, and QR code. It has a clean developer API, extensive documentation, and is widely trusted by Nigerian businesses of all sizes. Transaction fees are typically 1.5 percent of the transaction value plus ₦100 for local transactions, capped at ₦2,000 for transactions above ₦133,000.
Paystack is a strong choice for businesses building custom websites or apps that need to integrate a payment gateway independently.
Flutterwave
Flutterwave is another major Nigerian payment gateway with a strong presence across Africa. It supports a wide range of payment methods including card, bank transfer, mobile money, and cryptocurrency in some markets.
Flutterwave is particularly strong for businesses that need to accept cross-border payments — if you have customers outside Nigeria paying in foreign currencies, Flutterwave handles this well. Transaction fees are competitive with Paystack for local transactions.
PalmPay
Most Nigerians know PalmPay as a mobile wallet app. But PalmPay also operates a payment gateway — the same way Paystack and Flutterwave do — that powers checkout pages for online stores and platforms.
PalmPay's gateway allows customers to pay by bank transfer or debit card without needing to have a PalmPay account or app. The payment infrastructure is secure and built to handle high transaction volumes.
PalmPay is the payment gateway that powers all transactions on Sellora. When a customer buys from a Sellora store, they pay through PalmPay's gateway. The money is credited to the vendor's Sellora wallet immediately after each successful payment, with no commission deducted by Sellora.
Monnify
Monnify is a payment gateway by Moniepoint — one of Nigeria's fastest growing fintech companies. It is particularly popular for bank transfer payments and offers competitive transaction fees. Monnify has become increasingly trusted among Nigerian businesses looking for a reliable bank transfer focused payment solution.
Squad by GTBank
Squad is a payment gateway product from GTBank that allows businesses to accept online payments. It leverages GTBank's established financial infrastructure and is trusted by businesses that have existing relationships with GTBank.
Which Payment Gateway Is Right for You?
The answer depends on how you are selling.
If you are building a custom website or app and need to integrate a payment gateway yourself, Paystack and Flutterwave are the most developer-friendly options with the best documentation and support.
If you are selling on a platform like Sellora, the payment gateway is already integrated for you. Sellora uses PalmPay's gateway which is set up out of the box — customers can pay by bank transfer or card from day one without any technical setup on your part.
For most Nigerian online sellers who are not building custom technology, the simplest answer is to use a platform that has payment already integrated rather than dealing with gateway setup independently.
What to Look for in a Payment Gateway
When evaluating payment gateways, consider transaction fees — what percentage or flat fee is charged per transaction and how does that affect your margins. Consider the payment methods supported — can customers pay by bank transfer, card, and mobile money? Consider settlement speed — how quickly does money get from the customer's payment to your bank account? And consider reliability — does the gateway have a strong uptime record and good customer support when things go wrong?
The Bottom Line
Payment is the moment a customer decides to trust you with their money. A smooth, secure, reliable checkout experience converts browsers into buyers. A complicated or untrustworthy payment experience costs you sales.
Choose a payment solution that is frictionless for your customers, reliable for your business, and affordable in terms of fees. If you are building your store on Sellora, payment is already sorted — PalmPay's gateway is integrated and ready from the moment you create your account.
👉 Create your free Sellora store at www.sellora.ng and start accepting payments today — no payment setup required.