Paystack, a Nigerian fintech company and subsidiary of Stripe, has taken a significant step to enhance payment solutions for businesses in Nigeria.
The company has integrated OPay, a popular digital payment platform, into its system, enabling merchants to receive payments directly from millions of OPay accounts.
This integration is part of Paystack’s efforts to prioritize 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.
According to Paystack CEO Shola Akinlade, providing payment methods familiar to customers is crucial. He noted that OPay has risen as a trusted payment platform, particularly during Nigeria’s 2023 cash crunch, which saw many consumers shift to fintech solutions due to banking disruptions.
The collaboration between Paystack and OPay aims to deliver an exceptionally high transaction success rate, with Paystack claiming a 99.9999% reliability metric.
This partnership aligns with OPay’s goal of leveraging modern technology to deliver advanced financial services.
OPay’s Managing Director, Dauda Gotring, emphasized the importance of using technology to improve financial inclusion and access to financial services.
Paystack’s shift towards 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.
The integration with OPay strengthens Paystack’s position in the fintech sector while enhancing payment flexibility for Nigerian businesses.
This partnership comes at a time when both companies are achieving significant milestones. 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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