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Paystack vs Payfast: An Honest Comparison for Nigerian Businesses

Updated: Apr 4

Which Payment Gateway is Better for Nigerians? Paystack or Payfast?

Paystack vs Payfast
Paystack Vs Payfast

Did you know that over 60% of Nigerian freelancers struggle with receiving international payments? I was one of them.


Paystack vs Payfast: See how Paystack and Payfast compare in features, pricing, customer support, and ease of use!


Ten years ago, when I started my freelance writing business, one of my biggest headaches was finding a reliable payment gateway.


I tried everything—PayPal, Payoneer, and even Flutterwave—but they all had their own problems.


PayPal wasn’t fully supported in Nigeria, and many of my international clients refused to use alternatives like Payoneer.


At some point, I even lost clients simply because I didn’t have Zelle or PayPal. It was frustrating.


Then, I discovered Paystack. It was a game-changer!


The ease of receiving payments, the seamless integration, and the local bank support made my life easier.


But recently, a fellow freelancer introduced me to Payfast, and I decided to give it a try.


That’s why I’m writing this comparison—to help you choose between Paystack and Payfast based on real-life experience.


What You Will Learn: Paystack vs Payfast – A No-Nonsense Comparison


  • The key differences between Paystack and Payfast

  • Which payment gateway has lower fees and better features

  • Pros and cons of both platforms

  • Which one works best for freelancers and businesses in Nigeria

  • A breakdown of customer support, security, and ease of use


Table of Contents



What is Payfast?


Payfast is an online payment gateway that allows businesses and freelancers to accept payments from customers.


Brief History of Payfast:


Payfast was founded in South Africa and has since expanded to other countries.


The platform is known for its fast transaction processing and integration with multiple payment methods.


When Was It Created?


Payfast was launched in 2007.


Who is the CEO of Payfast?


Currently, Payfast is owned by Network International, a leading payment solutions provider in Africa and the Middle East.


Want to try Payfast? Click here to sign up and process your first transaction today.


What is Paystack?


Paystack is a Nigerian payment gateway that allows businesses to accept payments online.


It is one of the most popular payment solutions in Africa.


Brief History of Paystack:


Paystack was founded by Shola Akinlade and Ezra Olubi in 2015 and has grown rapidly, becoming the preferred choice for many Nigerian businesses.


When Was It Created?


Paystack launched in 2015 and was later acquired by Stripe in 2020.


Who is the CEO of Paystack?


Shola Akinlade is the co-founder and CEO of Paystack.


Ready to start using Paystack? Click here to sign up and start receiving payments instantly.


What Do Payment Gateways Like Paystack and Payfast Do?


Paystack:


  • Accepts payments via credit/debit cards, bank transfers, and USSD

  • Integrates with eCommerce platforms like Shopify and WooCommerce

  • Allows businesses to automate invoices and recurring billing

  • Provides fraud detection and security features


Payfast:


  • Supports payments via cards, bank transfers, and mobile wallets

  • Offers a seamless checkout experience for businesses

  • Has strong security and fraud prevention tools

  • Works well for international transactions


Pros of Paystack


  • Easy to set up and integrate

  • Supports multiple payment methods, including USSD and bank transfers

  • Competitive transaction fees

  • Strong security and fraud prevention

  • Excellent customer support


Want to start using Paystack? Click here to sign up and start receiving payments instantly.


Cons of Paystack


  • Not available in some African countries

  • Limited support for international payments

  • Some businesses report delays in fund settlement


Pros of Payfast


  • Supports multiple currencies and international payments

  • Secure and fast payment processing

  • Easy integration with eCommerce platforms

  • Strong fraud prevention tools


Want to start using Payfast? Click here to sign up and process your first transaction today.


Cons of Payfast


  • Higher transaction fees compared to Paystack

  • Limited availability in some regions

  • Customer support response time can be slow


Payfast Fees and Pricing


Payfast charges a percentage of each transaction.


The exact fees depend on the type of payment method used.


Paystack Fees and Pricing


How much does Paystack charge it's customers per transaction?


Paystack charges 1.5% + ₦100 per local transaction and 3.9% + ₦100 per international transaction.


Want to start using Paystack? Click here to sign up and start receiving payments with low fees.


Payfast vs Paystack: Which is Cheaper for Nigerians?


When comparing fees, Paystack is generally more affordable for local transactions, while Payfast is better for international payments.


Payfast vs Paystack: Which Payment Gateway Has Better Customer Support?


Paystack offers better customer support with multiple channels like email, chat, and social media.


Payfast, on the other hand, has slower response times.


Cheapest Online Payment Gateways Besides Paystack and Payfast


  • Flutterwave: A leading Nigerian payment gateway

  • Remita: Popular for government transactions

  • VoguePay: Good for small businesses

  • Opay: Offers low transaction fees



Frequently Asked Questions: Payfast or Paystack?


How much does Paystack charge per transaction?

Paystack charges 1.5% + ₦100 for local transactions and 3.9% + ₦100 for international transactions.


Can I receive USD with Paystack?

Yes, Paystack supports USD transactions, but only for certain business accounts.



Final Thoughts – Which One Should You Choose?


Paystack or Payfast? What will be your decision right now?


If you need a payment gateway for local transactions in Nigeria, Paystack is the best option. But if you handle a lot of international payments, Payfast might be worth considering.


Which one do you prefer? Let me know in the comments!


Cheers,


Written by: Simon Taki Zaku - Jalingo, Nigeria,

Founder, CEO: IbiFoundry LLC,

As seen on: Forbes Africa, Amazon, MarketingInsiders, Cyberbackpack, RescueACEO, InfinityBlogAwards Co., BloggingFromParadise, A1Future, amongst others.


Contact Simon with your: queries, questions, business projects and proposals, orders and suggestions, testimonies about IbiFoundry, or you just want to connect and say hi?


I read and reply to all the mail I get from you guys - Expect a reply from me to your mail within 24 hours ;)


WhatsApp: +2349137839031

Instagram: @ibifoundry, @realsimonzaku_

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Planned, Designed by Simon Zaku, Founder, IbiFoundry, 2025.

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