What is paystack and how to use it 2024

If you’re a business owner in Nigeria, you’ve probably heard of Paystack. It’s one of the most popular payment processors in the country, and it’s easy to see why. Paystack offers a wide range of features that make it easy to accept payments from your customers, both online and offline.

In this blog post, we’ll take a look at what Paystack is, how to use it, and some of the benefits of using it for your business.

What is Paystack?

What is paystack and how to use it 2023

Paystack is a payment processing platform that allows businesses in Nigeria to accept payments from their customers online and offline. It offers a wide range of features, including:

  1. Online payments: Paystack allows businesses to accept payments from their customers through a variety of online payment methods, including credit cards, debit cards, and mobile money.
  2. Offline payments: Paystack also allows businesses to accept payments from their customers offline through a variety of methods, such as POS terminals and bank transfers.
  3. Subscription payments: Paystack allows businesses to set up recurring subscription payments for their customers.
  4. Invoicing: Paystack allows businesses to send invoices to their customers and accept payments directly through the invoice.
  5. Analytics: Paystack provides businesses with detailed analytics about their payments, so they can track their sales and identify areas for improvement.

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How to get started with Paystack

If you are interested in using Paystack, you can get started by creating an account on the Paystack website. Once you have created an account, you can verify your business and start accepting payments from customers.

How to use Paystack

To use Paystack, you’ll need to create an account and add your business information. Once you’ve done that, you can start accepting payments from your customers.

To accept online payments, you’ll need to integrate Paystack with your website or online store. Paystack provides detailed documentation and tutorials on how to do this.

To accept offline payments, you’ll need to purchase a POS terminal from Paystack. Paystack also offers a mobile app that allows you to accept payments from your smartphone.

Benefits of using Paystack

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There are many benefits to using Paystack for your business, including:

  1. Ease of use: Paystack is very easy to use, even for businesses with no technical experience.
  2. Competitive pricing: Paystack offers competitive pricing for its payment processing services.
  3. Reliable service: Paystack is a reliable and trusted payment platform.
  4. Wide range of payment options: Paystack offers a wide range of payment options, including credit cards, debit cards, bank transfers, and mobile money.
  5. International payments: Paystack allows businesses to accept payments from customers all over the world.

Paystack features

Paystack offers a variety of features that can help you grow your business, including:

  • Subscription payments: Paystack allows you to accept subscription payments, so you can get paid on a recurring basis.
  • One-time payments: Paystack also allows you to accept one-time payments, such as for products or services that you sell.
  • Payment links: Paystack allows you to generate payment links that you can share with customers via email, SMS, or social media.
  • Invoices: Paystack allows you to send invoices to customers, and they can pay the invoices using their preferred payment method.
  • Analytics: Paystack provides detailed analytics on your payments, so you can track your sales and identify areas for improvement.

How You can use Paystack in 2023

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To use Paystack, you first need to create an account. This can be done on the Paystack website. Once you have created an account, you will need to verify your business. This can be done by providing Paystack with some basic information about your business, such as your business name, address, and website.

Once your business has been verified, you can start accepting payments from customers. To do this, you will need to generate a payment link. You can do this by going to the Paystack dashboard and clicking on the “Create Payment Link” button.

Once you have generated a payment link, you can share it with your customers. When a customer clicks on the payment link, they will be taken to a secure payment page where they can enter their payment information.

Once the customer has entered their payment information, Paystack will process the payment and deposit the funds into your Paystack account. You can then transfer the funds to your bank account at any time.

What is Paystack and what is it used for?

Paystack is a payment solution provider that facilitates online and offline payments for businesses in Africa. It is a popular choice for businesses of all sizes, from startups to large enterprises.

Here are some of the things that Paystack can be used for:

  1. Accepting online payments: Paystack makes it easy for businesses to accept online payments from customers all over the world. It supports a wide range of payment methods, including credit and debit cards, mobile money, and bank transfers.
  2. Accepting in-person payments: Paystack also offers a Point-of-Sale (POS) terminal that businesses can use to accept in-person payments from customers. The POS terminal is easy to use and integrates seamlessly with Paystack’s online payment gateway.
  3. Sending and receiving payments: Paystack can also be used to send and receive payments between businesses and individuals. This makes it a convenient way for businesses to pay their suppliers and employees, and for individuals to send money to friends and family.

In addition to these core features, Paystack also offers a number of other features that can be helpful for businesses, such as:

  1. Subscription payments: Paystack makes it easy for businesses to set up and manage subscription payments. This is ideal for businesses that offer subscription-based services, such as software, streaming content, and online courses.
  2. Invoicing: Paystack also offers a built-in invoicing system that businesses can use to create and send invoices to their customers. This can help businesses to streamline their payment process and get paid faster.
  3. Reporting and analytics: Paystack provides businesses with detailed reports and analytics on their payments. This information can be used to track sales performance, identify trends, and make better business decisions.
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How to get your money from Paystack

First, log in to your Paystack dashboard.

Once you’re logged in, you’ll see a summary of your account activity, including your current balance. To get your money out, click on the Payouts tab.

Choose your payout destination.

You can choose to withdraw your money to your bank account or to your Paystack Balance. If you’re withdrawing to your bank account, make sure that it’s a verified account.

Enter the amount you want to withdraw.

You can withdraw all of your money or just a portion of it. If you’re withdrawing a portion, make sure to leave enough money in your Paystack account to cover any upcoming payments.

Review your payout and confirm.

Before you confirm your payout, make sure to review the details carefully. Once you’ve confirmed the payout, it will be processed immediately.

That’s it! You’ve now successfully withdrawn your money from Paystack.

Here’s a step-by-step guide:

  1. Log in to your Paystack dashboard.
  2. Click on the Payouts tab.
  3. Click the Request Payout button.
  4. Enter the amount you want to withdraw and select your withdrawal destination.
  5. Click the Request Payout button again to confirm.

That’s it! Paystack will process your payout and send the money to your bank account within 24 hours.

Payout on Demand

If you need your money sooner, you can use Paystack’s Payout on Demand feature. This allows you to withdraw a portion of your earnings before the next payout run.

To request a Payout on Demand, simply follow the steps above, but select Paystack Balance as your withdrawal destination. You can then transfer the money to your bank account from your Paystack Balance.

Payout fees

Paystack charges a small fee for each payout. The fee varies depending on the withdrawal destination and the amount you’re withdrawing. You can see the current payout fees on Paystack’s website.

Can Nigerians use Paystack?

Yes, Nigerians can use Paystack. Paystack is a payment processing platform that allows businesses in Nigeria to accept payments from customers all over the world. It is a popular choice for Nigerian businesses because it is easy to use and offers a variety of features, such as the ability to accept payments from both local and international customers, the ability to create and manage subscriptions, and the ability to issue refunds.

To use Paystack, you will need to create an account and provide some basic information about your business. Once your account is approved, you can start accepting payments by adding Paystack buttons to your website or app. Paystack also offers a variety of plugins and integrations that make it easy to connect Paystack to popular e-commerce platforms such as WooCommerce and Shopify.

Who owns Paystack?

As of November 4, 2023, Paystack is owned by Stripe, Inc., an American financial services and software company that develops online payment processing software and APIs for businesses of all sizes. Stripe acquired Paystack in October 2020 in a deal worth $200 million, making it the largest fintech acquisition in Africa to date.

Paystack was founded in 2015 by Shola Akinlade and Ezra Olubi, two Nigerian entrepreneurs who set out to solve the problem of online payments in Africa. Paystack’s platform makes it easy for businesses to accept payments from customers using a variety of local and global payment methods, including Visa, Mastercard, Verve, and mobile money.

Paystack has quickly become one of the leading online payment processors in Africa, with over 60,000 businesses using its platform to collect payments. The company’s clients include some of the biggest names in African tech, such as Uber, Bolt, and Domino’s.

Stripe’s acquisition of Paystack is seen as a major coup for both companies. Stripe is already one of the leading online payment processors in the world, and its acquisition of Paystack gives it a strong foothold in the rapidly growing African market. Paystack, in turn, benefits from Stripe’s resources and expertise, which will help it to accelerate its growth and expansion.

So, who owns Paystack? Stripe, Inc. does. But what does that mean for the future of Paystack? I believe that Stripe’s acquisition is a positive development for both companies and for the African fintech ecosystem as a whole. Stripe has a proven track record of helping businesses to grow and scale, and I expect that Paystack will continue to thrive under its new ownership.

Which bank uses Paystack?

Paystack is a popular payment gateway used by businesses in Africa to accept payments from their customers. It supports a wide range of payment methods, including cards, bank transfers, and mobile money.

Which banks are supported by Paystack?

Paystack supports all major banks in Nigeria, including:

  1. Access Bank
  2. ALAT by Wema Bank
  3. Diamond Bank
  4. FCMB
  5. Fidelity Bank
  6. Guaranty Trust Bank (GTBank)
  7. Kuda Bank
  8. Sterling Bank
  9. United Bank for Africa (UBA)
  10. Zenith Bank
  11. And more.

How does Pay with Bank work?

To pay with bank, your customers will need to provide their bank account number and authorize the transaction using two-factor authentication (2FA). This can be done using their date of birth, OTP, and/or BVN.

For GTBank customers, they will be redirected to their internet banking platform to authorize the payment.

Once the transaction is authorized, the funds will be immediately transferred to your Paystack account.

Why do banks use Paystack?

There are a few reasons why banks use Paystack. First, Paystack is a very secure payment processing platform. It uses the latest security technologies to protect businesses and customers from fraud.

Second, Paystack is very easy to use. Businesses can integrate Paystack into their website or app in minutes, and customers can make payments quickly and easily.

Finally, Paystack offers a variety of features that are beneficial for banks, such as:

  • The ability to process payments in multiple currencies
  • The ability to accept payments from a variety of payment methods
  • The ability to generate detailed reports on all transactions
  • The ability to integrate with other financial systems

How can businesses use Paystack?

If you’re a business in Africa, you can use Paystack to accept payments from customers online and offline. To get started, simply create an account on the Paystack website and integrate Paystack into your website or app.

Once you’ve integrated Paystack, you can start accepting payments from customers. When a customer makes a payment, Paystack will process the payment and deposit the funds into your bank account.

Paystack vs Flutterwave: Which is the Better Payment Processor for You?

Paystack and Flutterwave are two of the most popular payment processors in Africa, and for good reason. They both offer a wide range of features, competitive pricing, and a strong reputation for security and reliability.

So, which one is the better choice for your business?

Here’s a quick comparison of Paystack and Flutterwave to help you decide:

Paystack

  • Pros:
    • Easy to set up and use
    • Competitive pricing
    • Wide range of features, including recurring billing, invoices, and checkout pages
    • Strong customer support
  • Cons:
    • May not be the best choice for businesses that need to accept payments from a large number of international customers
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Flutterwave

  • Pros:
    • Supports a wider range of international payment methods
    • Offers more advanced features, such as fraud detection and marketplace payments
    • Has a larger global footprint
  • Cons:
    • Can be more difficult to set up and use
    • Pricing is more complex
    • Customer support may not be as responsive as Paystack’s

Features

  • Paystack offers a variety of features, including:
    • Online and offline payments
    • Recurring billing
    • Invoicing
    • Payouts
    • Fraud detection
    • Developer tools
  • Flutterwave also offers a variety of features, including:
    • Online and offline payments
    • Recurring billing
    • Invoicing
    • Payouts
    • Fraud detection
    • Developer tools
    • Additional features such as:
      • Barter (a buy-now-pay-later service)
      • Flutterwave for Business (a suite of tools for businesses to manage their finances)

Pricing

  • Paystack charges a transaction fee of 1.5% + ₦100 per transaction.
  • Flutterwave charges a transaction fee of 1.4% + ₦100 per transaction.

Supported countries

  • Paystack supports payments from over 150 countries, including all African countries.
  • Flutterwave supports payments from over 200 countries, including all African countries.

Customer support

  • Paystack offers customer support via email, phone, and live chat.
  • Flutterwave offers customer support via email, phone, and live chat.

So, which is better? Paystack or Flutterwave?

Ultimately, the best payment gateway for you will depend on your specific needs. However, here is a general summary of the two platforms:

  • Paystack is a good choice for businesses that are looking for a simple and easy-to-use payment gateway with competitive pricing.
  • Flutterwave is a good choice for businesses that need a more comprehensive payment solution with additional features such as Barter and Flutterwave for Business.

If you are still unsure which platform is right for you, I recommend that you try both Paystack and Flutterwave and see which one you prefer. Both platforms offer free trials, so you can test them out before you commit to a paid plan.

Can I transfer money from Paystack to bank account?

Yes, you can transfer money from Paystack to a bank account.

Paystack is a payment processing platform that allows businesses to accept payments from their customers online. It is a popular choice for businesses in Nigeria, Ghana, and South Africa.

Paystack also offers a Transfers feature that allows businesses to send money from their Paystack balance to bank accounts in their country. This feature is useful for businesses that need to make payments to suppliers, employees, or other third parties.

To transfer money from Paystack to a bank account, you will need to:

  1. Log in to your Paystack account.
  2. Click on the Transfers tab.
  3. Click on the Create Transfer button.
  4. Enter the bank account details of the recipient.
  5. Enter the amount of money you want to transfer.
  6. Click on the Send button.

Paystack will then initiate the transfer. The transfer will typically be completed within 24 hours, but it may take up to 48 hours in some cases.

Does Paystack refund money?

Yes, Paystack does refund money. You can refund your customers either partially or fully, and you can do it through the Paystack dashboard or via the API.

How to refund a customer through the Paystack dashboard:

  1. Log in to your Paystack dashboard.
  2. Click on Transactions.
  3. Find the transaction that you want to refund and click on it.
  4. Click on the Refund button.
  5. Enter the amount that you want to refund and click on Confirm.

How to refund a customer via the API:

  1. Make a POST request to the Create Refund API endpoint.
  2. Pass in the transaction ID or reference in the transaction field.
  3. If you don’t pass in an amount, Paystack will refund the full amount of the transaction.
  4. If you want to do a partial refund, pass in an amount parameter with the amount that you want to refund.

How long does it take to receive a refund?

Refunds are typically processed within 3-10 working days. The exact processing time will vary depending on the customer’s bank and the payment method that they used.

Important things to keep in mind about refunds:

  • Paystack’s transaction charges are not refundable.
  • You can only refund transactions that have been successfully processed.
  • Refunds are first deducted from your pending payout.

How long does Paystack take to payout?

If you’re a Paystack merchant, you’re probably wondering how long it takes to receive your payouts. The good news is that Paystack is known for its fast payouts. In fact, you can receive your money within 24 hours of a successful payment.

Here’s a breakdown of how long it takes for Paystack to payout:

  • Nigerian merchants: T+0 payout, meaning you’ll receive your money on the same day that it’s collected.
  • Ghanaian merchants: T+1 payout, meaning you’ll receive your money on the next day after it’s collected.
  • All other merchants: T+2 payout, meaning you’ll receive your money two days after it’s collected.

It’s important to note that these are just estimates. There may be times when it takes longer to receive your payout, such as if there’s a bank holiday or if your bank is experiencing technical difficulties.

Does Paystack require BVN?

Yes, Paystack requires businesses in Nigeria to provide their Bank Verification Number (BVN) when signing up. The BVN is an 11-digit number that is linked to your name, phone number, and bank accounts. It is used as a national identity verification tool to help reduce fraud and protect consumers.

Paystack uses your BVN to verify your identity and approve your business as quickly as possible. They also use it to monitor your account for suspicious activity and protect you from fraud.

Why is BVN required?

The Central Bank of Nigeria (CBN) requires all financial institutions in Nigeria to collect and verify the BVN of their customers. This is part of a broader effort to reduce fraud and promote financial inclusion.

How to provide your BVN to Paystack

When you sign up for a Paystack account, you will be asked to provide your BVN. You can do this by entering your BVN and clicking the “Verify BVN” button. Paystack will then send an OTP (one-time password) to your phone number or email address. You will need to enter this OTP to complete the verification process.

Is my BVN safe with Paystack?

Yes, your BVN is safe with Paystack. Paystack is a licensed financial institution by the Central Bank of Nigeria, and they use the highest security standards to protect their customers’ data.

What if I don’t have a BVN?

If you are a Nigerian business and you don’t have a BVN, you can apply for one at any bank branch in Nigeria. You will need to provide your government-issued ID and other supporting documentation.

What happens if I send the wrong amount to Paystack?

If you send the wrong amount to Paystack, don’t worry! They will automatically initiate a refund to the customer. This means that the customer will receive the difference between the amount they paid and the correct amount.

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For example, if a customer is supposed to pay NGN10,000 and they send NGN12,000, we’ll automatically refund the extra NGN2,000 to the customer.

Refunds are usually processed within 3-10 working days, but they may take longer depending on the customer’s bank.

Here’s what you need to do:

  1. Log in to your Paystack dashboard.
  2. Go to the Transactions tab.
  3. Find the transaction where you sent the wrong amount.
  4. Click on the Refunds tab.
  5. Click on the New Refund button.
  6. Enter the amount you want to refund.
  7. Click on the Confirm button.

That’s it! You’ve now successfully refunded the customer. You and the customer will both receive an automated email from Paystack confirming the refund.

What problem does Paystack solve?

In a nutshell, Paystack solves the problem of online payments in Africa. It’s a secure and reliable payment processor that makes it easy for businesses to accept payments from customers all over the world.

Before Paystack, it was notoriously difficult for African businesses to accept online payments. The process was complex and expensive, and there were few reliable payment processors available. As a result, many African businesses were missing out on the opportunity to sell their products and services online.

Paystack changed all that. With Paystack, businesses can set up an online payment gateway in minutes and start accepting payments from customers all over the world. Paystack also offers a variety of features to help businesses manage their payments, such as fraud detection, recurring billing, and analytics.

How much is Paystack worth now?

Paystack is a Nigerian fintech company that provides online payment processing services to businesses of all sizes. It was founded in 2015 by Shola Akinlade and Ezra Olubi, and has since grown to become one of the leading payment processors in Africa.

In 2020, Paystack was acquired by Stripe for over $200 million. This made it one of the most valuable startups in Africa at the time.

So, how much is Paystack worth now?

It’s difficult to say for sure, as Paystack is not a publicly traded company. However, based on recent funding rounds and acquisitions of similar companies, it is estimated that Paystack is currently worth between $1 billion and $2 billion.

This makes Paystack one of the most valuable unicorns in Africa, and a testament to the success of the African tech ecosystem.

Can I receive money in dollars with Paystack?

Yes, you can receive money in dollars with Paystack! This is a great option for Nigerian businesses that want to accept international payments or get paid in USD directly.

To receive money in dollars with Paystack, you’ll need to have:

  • A Paystack business account
  • A Zenith Bank domiciliary account

Once you have both of these things, you can enable international payments on your Paystack dashboard. Once international payments are enabled, you’ll be able to receive payments from customers anywhere in the world, using any internationally-issued card.

Here’s how it works:

  1. A customer wants to buy your product or service and they pay with a USD card.
  2. Their bank deducts the USD equivalent of the amount from their account.
  3. Paystack receives the USD amount and converts it to your local currency (NGN).
  4. Paystack pays out the converted amount to your Zenith Bank domiciliary account.

It’s that simple!

Here are some of the benefits of receiving money in dollars with Paystack:

  • Get paid faster: Paystack pays out international settlements within 24 hours of receiving the funds.
  • Reduce fees: Paystack’s international settlement fees are very competitive.
  • Get paid directly in USD: You don’t have to worry about converting currencies or dealing with exchange rates.

How much does Paystack charge?

Paystack is a popular online payment gateway in Africa, and it’s known for its competitive pricing. But how much does Paystack actually charge?

Local transactions

For local transactions in Nigeria, Paystack charges 2.9% + ₦100. However, there is a transaction cap of ₦2,000, so you will never pay more than that in fees per transaction. Additionally, Paystack waives the ₦100 fee for transactions under ₦2,500.

International transactions

For international transactions, Paystack charges 3.8%. You can charge international cards in KES or USD, and get settled in either currency.

Transaction volume discounts

Paystack also offers transaction volume discounts to merchants who process large volumes. To qualify for a discount, you must process at least ₦10 million in transactions per month.

How long does it take to get my money?

Your money is automatically settled into your bank account or M-PESA wallet in three working days (T+3). So payments received on Monday, for example, will be settled on Thursday.

Is it free to integrate Paystack?

Yes, it’s 100% free to integrate Paystack!

What is Paystack Checkout?

Paystack Checkout is a secure and easy-to-use payment processing solution for businesses in Africa. It allows businesses to accept payments from their customers using a variety of payment methods, including credit cards, debit cards, mobile wallets, and bank transfers.

Paystack Checkout is a hosted checkout solution, which means that businesses do not need to build their own checkout pages. Instead, they can simply generate a checkout URL from their Paystack dashboard and embed it on their website or mobile app.

Once a customer clicks on the checkout URL, they will be taken to a secure Paystack payment page where they can enter their payment information. Paystack will then process the payment and notify the business of the outcome.

How to integrate Paystack payment gateway in website

Paystack is a popular payment gateway in Nigeria that allows businesses to accept online payments from customers all over the world. It is easy to set up and use, and it offers a variety of features that make it a good choice for businesses of all sizes.

To integrate Paystack into your website, you will need to create an account and obtain your public and secret keys. Once you have your keys, you can use them to add Paystack checkout forms to your website.

There are a few different ways to integrate Paystack into your website. You can use the Paystack API, a plugin, or a hosted checkout page.

Using the Paystack API

To integrate Paystack using the API, you will need to have some programming knowledge. You will need to use the Paystack API to create a checkout form and to process payments.

Using a plugin

If you are using a content management system (CMS) such as WordPress, you can use a plugin to integrate Paystack into your website. There are a number of Paystack plugins available, so you can choose one that is compatible with your CMS.

Using a hosted checkout page

If you don’t have any programming knowledge, you can use a hosted checkout page to integrate Paystack into your website. A hosted checkout page is a web page that is hosted by Paystack. You can add a link to your hosted checkout page on your website.

Richard okechukwu Chinedu

FinTech enthusiast with a passion for making financial technology accessible and understandable. I break down complex concepts into actionable insights to empower readers to navigate the ever-evolving world of FinTech.

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