Choosing the right payment gateway can be quite tricky, especially with excellent options like Monnify and Paystack. In this article, I’ll highlight the upsides and downsides of both, so you can decide which is best for you.
Paystack and Monnify are not only fast and secure online payment gateways for receiving payments in Nigeria, but they are also affordable. These platforms eliminate the need to worry about paying exorbitant transaction fees.
Most Nigerian businesses set up an online payment gateway to receive payments from their customers. For example, when you sign up for savings and investments apps like Piggyvest or Cowrywise and want to add money to your account with a card or your NUBAN account, that service is powered by an online payment gateway.
Also Read: Paystack vs Flutterwave: Which should I use?
Who Needs Monnify vs Paystack?
The major users of online payment gateways are e-commerce stores, fintech apps, and digital creators. This is because using them is easy and incredibly fast for business owners and users. Registering for an online payment gateway is an excellent idea if you receive lots of payments, it helps you get paid from anyone and anywhere as fast and seamless as possible.
With easy payment options like cards, USSD transfers, and mobile transfers, you can pay for whatever you want, whenever you do for an affordable fee.
What Does Paystack Do?
You can collect payments from your customers, clients, or fans effortlessly with Paystack. Paystack’s payment options are so flexible and accessible that your customers can pay from anywhere in the world and you’ll receive the funds in less than 48 hours.
The payment options available are cards, bank transfers, USSD, QR codes, or an individual bank account. Also, Apple Pay and mobile money are international payment options for Paystack customers.
You’re paying absolutely nothing for integrating paystack. You only pay 1.5 percent of the transaction when someone pays you plus the standard N100 standard fee for transactions above N2500.
You can also receive payment in NGN and USD with paystack, but the fee for international payments is slightly higher (3.9%) plus the flat fee.
Another upside of having paystack is that you can use it to verify customers and track and improve your business growth with meticulous reports.
What is Monnify Payment Gateway?
Monnify is also an online payment gateway that allows you to receive money via various payment methods.

One thing no one has over Monnify is how affordable the rates are. Monnify charges 1.3% on card payments up to N2000 and 1%on account transfers (N1000 maximum).
Simply put, if your customers are paying you through bank transfers, Monnify’s commission is 1% of the amount. But if your customers take the card payment route, you’ll be charged 1.3%.
The maximum amount Monnify charges for transfers is N1000 and N2000 for card payments. You could also opt for a standard fee of N500 for payments via transfer.
Monnify allows you to choose who pays the charges; you or the customers. If your customers are the ones bearing the charges, Monnify will add the charges to the amount they are paying. But if it’s you, it will be deducted from the amount that will be settled into your account.
Split Payments by Monnify
Monnify allows you to split payments between accounts. For example, you could receive 70% of your payments in Account A and the remainder in Account B.
To set up split payments on Monnify, you’ll need to create sub-accounts on your profile. Then you’ll select the percentage that goes into each sub-account.
You’ll need to use Monnify’s API to do this. Monnify’s documentation is very detailed and easy to understand, so you shouldn’t have any trouble implementing it. You could also Monnify’s support to set it up.
Monnify’s Till Account and POS for Physical Stores
Till Account is a suitable payment method if you have a physical store. It’s a virtual account generated by Monnify for merchants with physical stores.
Also, when a customer pays at the POS, the money is automatically credited to your Till account.
What Are the Benefits of Using Monnify vs Paystack?
Monnify Pros
- You don’t have to pay any upfront fee for integrating Monnify.
- There are several methods your customers can pay you both online and offline (USSD, bank transfer, direct card debit, customer reserved account, POS, and Till Accounts).
- It’s safe and swift for processing payments.
- Monnify accepts all Nigerian cards- verve, visa, and MasterCard.
- Till accounts and POS payment for Physical stores.
- You can integrate more than one account to Monnify.
- Excellent customer support.
- You get settled twice daily
Monnify Cons
- Not available for countries outside Nigeria
Paystack Pros
- No integration fees
- Several payment methods (bank transfer, bank account, card payment, QR code, Apple Pay, and mobile money)
- You can receive international payments
- Secure and fast payments
- 24/7 customer support
Paystack Cons
- Its commission is higher than Monnify’s.
- It doesn’t have POS for physical stores yet (t’s labeled as coming soon)
Frequently Asked Questions– Paystack vs Monnify
Can Paystack Accept Dollars?
Yes, you can receive USD payments with paystack via international debit cards or Apple Pay. You can also create a USD dashboard to view your USD payments and withdraw funds to your domiciliary account in USD.
Is Paystack Safe?
Both Monnify and paystack operate PCI-DSS-certified systems. Your financial and personal information is secure when you use paystack or Monnify to process payments.
Does Monnify Operate Outside Nigeria?
No, not right now. Monnify does not currently process payments outside of Nigeria, but it is a rapidly growing company, so you should expect them to expand soon.
Is Monnify Cheaper than Paystack?
Monnify’s commission is lower than Paystack’s for both card payments and bank transfers.
Bottom Line: Monnify vs Paystack
These payment gateways are a quick, low-cost, and secure way to accept payments from your customers.
Paystack allows you to receive payments from a broader audience; across Africa and in USD. But its fees are slightly higher than Monnify’s.
Although Monnify is not yet a global payment gateway, its rates are lower. So, if your customers are Nigerians and you’d like to go for the most affordable payment option, choose Monnify.
Paystack, on the other hand, is a better option if your customers are both local and international.