Choosing the right Payment Aggregator for your Business

CChoosing the right Payment gateway and Aggregator Image

Choosing the right Payment Aggregator for your Business 

The payment ecosystem is growing, this is a fact, especially in sub-Sahara Africa, the data shows that the sector will continue to grow as businesses continue to take payments and utilize payment channels in taking those payments. Seeing that the flow of business in West Africa and indeed Nigeria have continued to grow, the need for payment channels and aggregators will continue to rise.  

The unprecedented growth of E-commerce has also paved the rise of the payment landscape over time, with more efficient and seamless payment options accessible to the customers.  Global eCommerce sales will hit $4.2 billion and account for 16% of total retail sales. As a result, making the right decisions is the lifeblood of business. 

This establishes enormous responsibility on the e-Commerce shop owners and businesses to match their pace with this ever-changing industry and provide their customers with the most seamless services. With the bar set so high, every wrong decision can be catastrophic for any developing business and government agency.  

The process of choosing the right payment aggregator for your business or your agency can make or break your business. It is, therefore, a move that will define your business and how you run it. To start with, you must truly understand what a payment aggregator is and what benefits it can offer your business. You should know the clear differences between payment aggregators and close border terms like payment gateways. Then, you should outline the top market payment aggregators, and do a comparative analysis based on certain qualities like security and transaction charges, all before making your decision. Sound like hard work? The good part is that you need not do all of that by yourself: we have written this piece to significantly ease the process. So, relax, read on and pay attention to every detail. While we together send your business to its next level of growth. 


What is a Payment Aggregator?

A Payment Aggregator is an integrated third-party payment system that helps merchants, like yourself, take, process, and manage financial transactions. Alongside the ease that payment aggregators bring to the table, their application aims to help business boost their revenue. Even more, the services of a payment aggregator are advanced, compared to those of a payment gateway that applies strictly to e-commerce payment. 

Payment aggregators can manage both online and offline touch-points; i.e that can process digital transactions as well as manage cash and cheque transactions, while eliminating the need for a ‘merchant account’. In essence, a payment aggregator enables your business set up a payment system with little or no stress, take quick payment with ease, and also keep a good record of the money inflow and outflow. 


6 Important factors to consider before choosing a payment aggregator

Now that you essentially know what to expect from a payment aggregator, you are one step away from making a decision that will ripple so much on your business. However, you must analyze each of your options carefully before making the ultimate decision. The way you can have two drinks made from essentially the same ingredients taste different is the same you will have two payment aggregators with similar visions operate differently. Simply put, no two payment aggregators are the same, and that is why you need to compare their strengths- and of course weaknesses- before opting for any. From our analysis, we have compiled a list of 6 qualities that we find essential for every payment aggregator, as well as examples of payment channels that have a reputation with such qualities. Let’s get it. 

1. What are the Security Infrastructures used by the Aggregator?:

This security of the channel is top of the list because it is largely the most important factor. The upsurge in the demand for payment aggregators has led to the rapid growth of the industry and consequentially,  there has been the emergence of so many payment solutions, some of which are not as secure as they seem and could be overrun by cyber attacks. You would agree that having your money safe is the priority, so, before considering the finical benefits the payment channel offers, you must do a check on their security.

The payment aggregators operate primarily online, so, if you are technically inclined, you can check for security measures such as SSL, SET, and S-HTTPS. Regardless of your technical knowledge, you should verify that you can set up personal security layers like a 2-factor authentication, password recovery options, a safe login screen, and even an address verification. Additionally, you can surf the internet for any record of a security breach, trust scores, and client reviews. 

2. What are the Financial Implications of the Aggregator?: 

Your goal is to process and manage your financial transactions through a payment aggregator and you do not want to end up losing a chunk of that money to transaction fees. After analyzing the security measures offered by the aggregator, you should work out an estimate of the direct and indirect fees associated with using the payment channel. Ideally, your estimate should cover installation fees, subscription fees (whether annually or monthly), maintenance fees, and charges for refunds, as applicable.

Depending on the nature of your business, you can order those fees based on priority. Take, for example, your business process a large amount of payment daily, you ideally want to opt for a payment channel with minimal transaction charges, compared to a business that processes payment infrequently.

Paystack and Flutterwave, which are two of Nigeria’s foremost payment channels offer no charge on setup and no annual fee, while they charge a 1.5% and 1.4% fee respectively on transactions with local cards. Other options such as VoguePay and Interswitch Webpay charge setup fees up to #2500 and #150,000 respectively.

3. Does the payment aggregator support payment from international currencies?:

Fairly, not all businesses consider this factor when selecting a payment aggregator, but you should! If your business already provides its products and services to foreign clients, you must ensure that your choice of payment aggregator accepts payment from such currency. And even if your target demography does not currently extend beyond the borders of Nigeria, you should consider the possibility of scaling.

Besides, this is one of the advantages of using a payment aggregator; you need not bother about conversion and transfer across currencies. Also, this account can come in handy if your business needs to make international payments, such as to a supplier. 

Again, using the examples of 2 of Nigeria’s foremost payment channels, PayStack accepts payment in NGN, GHS, and USD, while Flutterwave accepts payment in up to 27 currencies, which includes NGN, USD, RWF, CAD, GPB, EUR, TZS, ZWD, CDF, GHS, and XAF. 

4. What is the Overall Usability of the System?:

As much as you want to opt for a payment channel with so many technical features, it is important to consider how easy and efficient it would be for your clients- the actual users. A poor user experience would affect both the payment aggregator and your business inclusive. The payment user interface must be simple and hassle-free. 

Also, you should consider the level of technical support provided by the aggregator. How can your client report a transaction failure? How quickly does the company respond to such reports? You have the option of inquiring from the aggregator or reading reviews provided by other users. 

5. How long does it take to Process a Payment?:

Because these payment aggregators have different system build, they process transactions at different rates. If you opt for a payment channel that cannot process transactions almost immediately, you risk keeping your client waiting unnecessarily; everyone knows how that affects your business. Advisably, you can check through reviews and reputation markers to get a realistic view of the company’s performance. From analysis, PayStack has an average onboarding and approval time of 30 minutes, those of Flutterwave and Stripe are almost immediate, while some aggregators could last up to 2 weeks. In a fact, that a payment aggregator has a big name does not necessarily signify that it has a good performance. So do your research! – you would be helping yourself a great deal.

6. What additional Features does the Aggregator Offer?:

The services provided by the payment aggregators have principally divided into two: the core functionality and the value-added features. The major functions that your business requires are classified under the core functionalities, while the value-added features are functionalities that are integrated by the aggregator from time to time- both are essential. Importantly, the payment aggregator of your choice should support multiple options for billing, provide a concise transaction report, should be mobile device compatible, and support multiple login options. Also, you should be able to generate direct payment links, receive email confirmations, and have a clear refund policy. 


There you go! Choosing the right payment aggregator for your business is as simple as following all you have read in detail. Choosing Nigeria’s foremost payment aggregator, Moneta is the best decision you can make as touching processing payments for your business or agency. With this information and a clear understanding of your business goals, you are all set to choose the best payment aggregator for your business that can guarantee a revenue boost.