As a promoter of inclusive financial technology, we’re thrilled to discover that Africa’s foremost online and offline payment firm PayStack added Kuda Bank, another technology-driven financial institution to its list of pay with bank channel.
With this new PWB channel, payment has just been made simple thereby opening more doors of opportunities to grow your business with FinTech in Nigeria and around the World. And in this post, we’ll be guiding you on how to pay a PayStack pay with bank works and how can make payment merchant through their Kuda Bank.
Types of payment options on PayStack
- Pay with Card payment channel.
- Pay with Bank (PWB) Channel.
How does Pay With Bank work on PayStack?
Pay with bank is one of several payment channels on Paystack through which customers can pay merchant
In this post, Customers can now pay you directly from their Kuda Bank accounts
As a business owner, your customers should be able to pay you however they choose to. This is why we’re excited to add Kuda Bank as an option to our Pay with Bank payment channel. Going forward, your customers who use Kuda Bank will be able to pay you by simply entering their phone numbers on the Paystack Checkout Form.
Two things were considered for coming up with the idea of pay with bank: 1) to make it easy with customers who do not have a debit card to make payment, 2) to enable customers who do not want to use their payment card online to make payment directly from their bank.
What does this mean for merchants on paystack?
By this, merchants are able to widen the scope of their customer base so that a customer can simply enters a bank account detail (such as their bank account number or phone number) to make a transaction, PayStack says in a blog post.
How to use PayStack Kuda Pay With Bank Option
If you already bank with kuda, you can pay merchant following the steps below:
- Step 1: On the merchant’s checkout form, simply tap on the Pay with Bank option
- Step 2: Select Kuda Bank from the list of banks among the six available banks
- Step 3: Enter the phone number attached to your Kuda Bank account
- Step 4: Tap continue
- Step 5: Open your Kuda Bank app, and go to the Payments tab and select web payment option
- Step 6: Click ‘Get Pay ID’, copy the ID into the Paystack Checkout.
- Step 7: Tap on Authorize to make the payment.
That’s all! You just make payment on PayStack without using your credit or debit card details.
Other tips on Pay With bank Channel
While Nigeria-based businesses can use Pay With Bank option, Mobile Money works in place of that for Ghana-based businesses.
Credit and debit card channels are available in Nigeria and Ghana.
By default, Pay with Bank is enabled for your business. You can check this on the payment preferences page on the paystack dashboard.
The recurring payment isn’t available on PWB you can only make recurring payment through pay with card channel.
4 things we love about PayStack Pay With Bank Channel
1) It makes it easy to change your payout to your Kuda Bank account. This can be done by simply updating your payouts preferences to collect payouts in your Kuda Bank account.
2) It supports the top six technology-driven banks in Nigeria.
The supported banks on Pay With Bank are:
- Guaranty Trust Bank
- United Bank for Africa
- First Bank of Nigeria
- Zenith Bank
- Sterling Bank
- Kuda Bank
3) As par charges, Pay with Bank has exactly the same pricing as all other payment channels.
See PayStack Charges below:
For Local Transactions: 1.5% + NGN 100
₦100 fee waived for transactions under ₦2500
Local transactions fees are capped at ₦2000, meaning that’s the absolute maximum you’ll ever pay in fees per transaction
For International Transactions: 3.9% + NGN 100
All other fees
- International Transactions – USD Settlement: 3.9%
- Transfers of NGN 5,000 and below: NGN 10 per Transfer
- Transfers between NGN 5,001 and NGN 50,000: NGN 25 per Transfer
- Transfers above NGN 50,000: NGN 50 per Transfer
- BVN Resolve API: NGN 10 per API call
- BVN Match API: NGN 15 per API call
4) It creates more confidence for merchants and customers
What’s more with paystack pay with bank channel with kuda on the list? For us at InfomediaNG, it’s the time for merchants to start exploring this option.