How to set up an e-Commerce website & accept payment online in Nigeria

How to setup an e-commerce website & accept payment online in Nigeria

For an e-commerce business to thrive, a means to accept payment over the internet would be very necessary. In most cases, this would be through a website or app. For the purpose of this write-up, we would be sharing how to accept payment online in Nigeria through a website.

In addition to developing an e-commerce system from scratch, there are several web software out there that make this possible. The systems are typically fully-fledged e-commerce platforms that come with a storefront for customers and backend for the merchant to control the entire system. They would typically include features like multi-currency support, anti-fraud screening, etc.

You can install any of several e-commerce carts when you buy Web Hosting from Web4Africa
You can install any of several e-commerce carts when you buy Web Hosting from Web4Africa

39 Online e-Commerce Cart systems

Any of the listed systems can be obtained by buying web hosting from Web4Africa and installing them from the hosting control panel.

  • WooCommerce: this is a popular plugin based on WordPress
  • AbanteCart: free & open-source online cart
  • PrestaShop: a ready-made solution to create and manage an online store
  • WHMCS: this software is popular with web hosting, domain name, software, Internet Service Providers (ISPs) and related businesses
  • CubeCart: a free responsive and powerful e-commerce system
  • OpenCart: a free online store management system
  • osCommerce
  • Open eShop
  • Zen Cart
  • Loaded Commerce
  • TheHostingTool
  • BoxBilling
  • TomatoCart
  • thirty bees
  • Magento
  • LiteCart
  • X-Cart
  • Avactis
  • Quick.Cart
  • Open Source Point of Sale
  • SimpleInvoices
  • Invoice Ninja
  • Blesta
  • InvoicePlane
  • Arastta
  • AlegroCart
  • Axis
  • Zeuscart
  • Thelia 2
  • SeoToaster
  • phpCOIN
  • Shopware
  • ClientExec
  • Logic Invoice
  • osCmax
  • Maian Cart
  • WhatACart
  • ShopSite

Online Payment Gateways in Nigeria

The Nigerian payment gateways typically support all local payment methods in Nigeria. These include Naira Visa cards, Naira Mastercards, Interswitch Verve cards, cash tokens, USSD, instant bank transfer in addition to the array of mobile payment schemes offered by 3rd parties.

  • Interswitch: Interswitch is one of the oldest and leading payment processors in Nigeria, offering a range of payment solutions that extend beyond e-commerce. The company offers solutions including WebPay, WebPayDirect and QuickTeller, to support e-commerce businesses.
  • GTPay: powered by a leading bank GTBank, this enables merchants who bank with GTBank to accept payments online, after an application and approval process by the bank.
  • PayStack: this gateway supports local and international card payments, GTBank *737#, Visa Q, and Internet Banking for some 7 banks. PayStack is currently one of the more popular gateways in Nigeria presently.
  • Rave by FlutterWave: a very modern gateway backed by local and international technology. You can accept payment via Visa, Mastercard, Verve, USSD, MobileMoney, Cash tokens and online bank transfer. It supports over 150 currencies and is used by leading brands in Nigeria and across Africa.
  • PayU: with a focus on developing markets in and outside Africa, PayU has a subsidiary in Nigeria that caters to the local e-commerce market.
  • Paga: a locally-grown gateway that focuses primarily on mobile payment.

International Online Payment Gateways

These gateways are available to merchants in Nigeria but tend not to support the Nigerian currency, Naira.

  • PayPal: this popular gateway offers Business Account options for Nigerian merchants to accept payment online from Nigerian and international customers.
  • 2Checkout: it enables merchants to accept international cards, in addition to PayPal.
  • Wallets: the following online wallets get some usage in Nigeria and also offer merchant accounts – Skrill, Perfect Money, WebMoney, Bitcoin (through 3rd party gateways like Luno)

How to accept payment online in Nigeria

You can accept payment online from residents of Nigeria or anywhere else in the world if you sell products or services internationally. We share some easy steps below.

Total Time: 3 days

Register with an online payment gateway

The general principle is that a business or merchant needs to open an account with any of the service providers listed above. The provider would generally require some business documents, in accordance with the Know Your Customer (KYC) laws in their respective countries. These are needed, to protect the provider against fraud, and to curb money laundering.PayPal Business Accounts are now available in Nigeria. Merchants can receive funds and withdraw.

Login to the Merchant Dashboard

Once the merchant account is approved by the payment gateway, they would typically offer a Dashboard.
The dashboard would offer detailed information about money inflow, customer information, risk assessment of each payment, withdrawal records and other important information. They also come with settings that enable the merchant to customize their experience.PayStack Dashboard of a merchant

Check the Knowledgebase for technical steps

The Gateway’s Knowledgebase would contain detailed technical information about how the merchant can connect their e-commerce cart to the gateway’s Application Programming Interface (API). This enables the merchant’s technical personnel to integrate the gateway fully into the cart. Some other customizations could include fraud screening, refund flows, currency acceptance etc. The depth (or lack of) of the Knowledgebase can vary from one gateway to the other.Rave by Flutterwave Documentation

Test your integration

As a principle, many gateways offer a sandbox where the merchant can test their API integration. The merchant can use the test credentials in the online store while test transactions are being carried out to ensure everything is working correctly. They then only approve or enable a Live environment when the tests have passed the minimum technical requirements stipulated by the payment gateway.PayU Sandbox

Go Live

Considering online payment is a very serious business, an online store should only go live with payment collection once multiple tests have been carried out with satisfactory results. The live mode opens the store to the general public who can then transaction normally.Screenshot of an online store in Nigeria

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