Nigerian fintech Paystack, owned by Stripe, has announced a significant integration with OPay, enabling merchants to accept payments directly from millions of OPay accounts. This move is part of Paystack's strategy to build payment methods centered around bank transfers, which accounted for over half of all transactions processed by the company in 2023.

The "Pay by OPay" feature allows customers to make payments online seamlessly through the OPay app or web interface, eliminating the need for debit cards. This approach reduces transaction costs, which are often inflated by card payments. Paystack's CEO, Shola Akinlade, emphasized the importance of offering payment methods that customers know and trust.

OPay has gained prominence as a trusted payment option, particularly during the 2023 cash crunch in Nigeria, when traditional banks struggled to handle the surge in online transactions. The integration with Paystack is expected to provide customers with a 99.9999% transaction success rate.

Paystack has also partnered with the Nigeria Inter-Bank Settlement Scheme (NIBSS) to launch direct debits, allowing customers of most Nigerian banks to pay merchants through their accounts. This expansion of payment options is expected to benefit both merchants and customers.

In 2017, Paystack introduced "pay with bank transfer," which allowed customers to complete transactions without using a debit card. This payment method has since grown significantly, rising from under 13% of the company's total transaction activity in 2021 to over 50% by the end of 2023.

OPay's Managing Director, Dauda Gotring, expressed the company's commitment to building on its strength in modern technology to provide customers with cutting-edge financial service offerings. The integration with Paystack is a significant step in this direction.

The partnership between Paystack and OPay is expected to have a significant impact on the Nigerian fintech landscape, providing merchants with more payment options and customers with greater convenience and security. As the fintech industry continues to evolve, collaborations like this are likely to play a crucial role in shaping the future of payments in Nigeria and beyond.