Paystack vs Flutterwave: Which should I use?

Paystack vs Flutterwave: Which should I use?

If you need to conduct transactions in Nigeria, you should use  Paystack and Flutterwave. This is because they offer users of their service including people, banks, and companies quick, simple, secure, digital experiences.

Two of the most dependable and well-liked possibilities for selecting an electronic medium for e-commerce by businesses, corporations, and entrepreneurs in Nigeria are the Paystack and Flutterwave payment systems.

Financial transactions have become easy and more convenient because of fast technological developments over the last few years. All you need is a smartphone or laptop to either purchase, sell or conduct other business transactions.

RELATED: Fastest and Cheapest Ways to Send Money to Nigeria in 2022

What is Paystack?

People can quickly and easily pay for goods and services online thanks to Paystack Payments Limited’s internet banking system.

It is a comprehensive Interface suite that enables merchants to accept and integrate any payment method into their online platform.

Paystack can be used to make single or multiple payments on an e-commerce website, verify client identity, or make quick transfers. Paystack can also be used to get customer data and financial history.

Advantages of Paystack

  • Paystack only charges a tiny fee for each payment that is successful, therefore transaction costs are low.
  • It offers a dashboard that gives you access to information, alerts, updates, as well as reports about any operations.
  • One of the numerous accepted payment options is Apple Pay, and another is international credit chips.
  • You can maintain tabs on client information, transaction history, payment history, and other crucial information.

Disadvantages of Paystack

  • Paystack is presently only available to Nigerian businesses.
  • Your business has to be registered with the Corporate Affairs Commission to receive payments from your customers.
  • If your business isn’t registered, you can only receive a limited amount on Paystack.
  • There’s a chance that Paystack won’t let your vendors get paid.
  • Paystack has poor communication skills. If there are problems with their profile, customers must first contact Paystack support to get a response.

Features of Paystack

Recurring billing

Using Paystack, you can set up recurring subscriptions for your commodities and request recurring payments from your consumers. Of course, this could be weekly, monthly, or yearly.

Invoice payment

Generate invoices for your services and send them to your clients. You can also set up reminders to follow up on payments.

Chargeback

Make it easy for your customers to initiate a refund when they don’t get value for their payments or subscription.

Payment page

Allow your customers easily checkout when they purchase a specific product on any of your product pages. These payment pages include information about the product and other details your customers need.

Products

On your Paystack Dashboard, you have access to your inventory and other items you’d want to display on your products page. With this, you can manage your stock and sell your items either directly or with the payment pages.

Paystack GO

Monitoring your payments becomes easier with the mobile dashboard. Paystack Go allows you to view transactions, payments, inventory, and other important store information directly from your mobile or smartphone.

What is Flutterwave?

Flutterwave, a transaction startup, offers organizations, businesses, and individuals in Nigeria online and offline marketing merchant accounts.

By using electronic money, online payments, USSD, and Point – of – sales, anybody can collect money with Flutterwave. By generating dollar wallets, anyone can also use them to accept transactions electronically.

Advantages of Flutterwave

  • It is mobile-friendly.
  • Customers can see what they’re buying by checking product images.
  • Flutterwave Store notifies you immediately when you place an order.
  • Flutterwave allows multiple currency transactions for both foreign and local businesses.
  • The pricing is cheap and affordable.
  • It helps you keep track of your spending by showing you all the information you need about a transaction.

Disadvantages of Flutterwave

  • Flutterwave does not currently have a Point of Sales (POS) machine.
  • There is no one-click payment option; customers must enter their bank information each time they want to pay for products or services.
  • It faces technical problems like issuer errors and network transaction failures.
  • Withdrawals are simple at local banks.
  • Also, their services are not available in every African country.

Features of Flutterwave

Web-based Cards

You can design and manage online wallets using the  Barter card-issuing platform from Flutterwave. Users can create cards with varied designs and budgets. The cards can be used anywhere that accepts Credit cards and PayPal.

Payment Links

These are links that will help you get funds from clients. Without a website, people can still make money by setting up a payment link on their dashboard and sending it to their clients whenever they wish to make a purchase.

Checkout

On the Flutterwave checkout page, you can receive money from customers in over 150 different currencies, including Naira, Dollars, Euros, Pounds, or Yuan.

Invoice payment

You can create professional invoices using Flutterwave, receive payments, as well as monitor transactions. These invoices can be sent directly to Whatsapp, and you can utilize automatic reminders to remind your clients to make timely payments.

Pricing and Fee: Paystack vs Flutterwave

Paystack Pricing

Source: Paystack

First off, creating a Paystack profile is cost-free. Once the money starts coming in, you only pay for the service. The location of your customer affects the price you charge as well.

Paystack costs NGN 100 in addition to a 1.5% commission on domestically produced goods. The NGN 100 fee does not apply to transactions under NGN 2,500.

Paystack’s pricing transaction fees are limited to NGN 2,000. The maximum a merchant has ever paid for a Paystack purchase is that amount.

Paystack levies an additional NGN100 for each payment in addition to a 3.9% service charge for international payments.

Flutterwave Pricing

Source: Flutterwave

Flutterwave, on the other hand, levies a processing fee of 1.4% on local transactions. The processing fee is capped at NGN 2000. Unlike Paystack, there is no additional NGN 100 cost.

Flutterwave charges a processing fee of 3.8 percent for all international transactions.

Paystack vs Flutterwave: Integration

Paystack interfaces with over 4000+ apps, including Paypal, Thinkfic, Zapier, Mailchimp, as well as Gmail, to help you automate daily tasks and free up more time for the important things.

Flutterwave integrates with different platforms, including Shopify, Sage, Xero, Quickbooks by Intuit, Zoho, and Squarespace.

Customer Support

Flutterwave and Paystack provide excellent customer service, even though it may take a while to receive a response during busy hours. It is usually due to many customers that need attention.

Paystack vs Flutterwave: Bottom Line

It is hard to pick a winner between these two because of their similarities. Both platforms offer secure forms of payment, even though their offerings differ in various respects. In contrast, Paystack charges a higher service cost than Flutterwave.

Paystack, which doesn’t require a brokerage account or a certificate of incorporation, is the best platform for small enterprises interested in receiving fund transfers.

Flutterwave can be useful if you already have a firm that is licensed in Nigeria and is searching for a more affordable solution. Any platform’s online credit card feature allows you to do electronic banking with it.


Also Read: Monnify vs Paystack: Best Payment Gateway in Nigeria?

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