Navigating Payment Systems in Nigeria's Ecommerce Sector

 When Easyshop Easycook launched it’s beta version in 2001 the payment options for businesses were limited to cash or cheque. Bank transfers were available but not commonly used for product or service payments. Customers preferred to see me in person before placing an order or at point of delivery before paying in cash or cheque, due to trust concerns and our company's pioneer status in e-commerce. Since then, e-commerce in Nigeria has grown rapidly and more convenient ordering and payment methods have emerged; thanks to the booming fintech industry. However, choosing the right payment system for your e-commerce business in Nigeria today can be challenging, with many options available. This article will explore the payment systems in Nigeria's e-commerce market and guide you in selecting the right one for your business.

Using a payment gateway is a widely adopted payment system for websites in Nigeria. A few years after establishing Easyshop Easycook, GTBank Plc introduced a secure payment gateway for e-commerce sites, GTPay. Our company was among the first to implement this solution, making online orders more convenient for our customers. Although it had some issues, the payment gateway was largely successful.

More payment gateways have since emerged such as Flutterwave and Paystack that offer debit or credit cards options. These platforms have improved upon earlier payment gateways like GTPay, offering easier setup, deployment, and a more user-friendly dashboard for monitoring transactions. They are a great choice for businesses looking to reach customers both domestically and internationally also offering features such as recurring payments, multi-currency support, and fraud protection. Some even offer third-party marketplaces for small businesses that may not have the resources to build their own e-commerce website.

Mobile money is another payment option for e-commerce businesses. This system enables customers to pay for products and services using their mobile phones. Mobile money providers, such as Paga and OPay make transactions accessible without the need to visit a bank. USSD is another type of mobile payment system that allows customers to make transactions using their mobile phones by dialing a specific code.

Bank transfers are another possibility for e-commerce businesses in Nigeria. Banks have developed mobile applications that is now widely accepted by many customers. They have improved features making them easier and more user-friendly for customers. These apps can be used to pay for goods/services and check bank transactions. They are straightforward because many customers already have bank accounts. 

Cash on delivery (COD) or point of sale (POS) is a payment option for e-commerce businesses seeking to provide customers with a simple and recognizable way to pay for their purchases upon delivery. Although COD and POS are convenient and favoured by customers, they may not be the most advantageous for businesses as they raise the risk of fraud and require extra resources for payment management and collection. Many businesses have experienced issues such as delivering to fake addresses or having no one present to receive the order. Additionally, there have been incidents of delivery staff being hurt or threatened when customers refused to pay at the point of receiving orders.

Over the years, Easyshop Easycook has discontinued the use of COD or POS and now provides payment gateways and accepts bank transfers for online orders. As a business operating for about 20 years with a money-back guarantee policy, our customers trust us and are comfortable using our provided options. They feel secure and know their money is safe, while we as a company feel secure knowing that our services are valued and paid for by reputable customers, creating a win-win scenario.

We have also applied this cashless payment system with most of our suppliers. Having a cashless payment system with suppliers offers numerous benefits to our business. Firstly, it increases efficiency and speed of transactions. Payments can be made promptly, reducing the need for manual processing and reducing the risk of errors. Secondly, a cashless system provides a secure and transparent payment method, reducing the risk of fraud and facilitating better record-keeping. Additionally, it improves cash flow management as payments are made automatically, reducing the risk of late payments and reducing the administrative burden of tracking payments. Furthermore, a cashless payment system improves relationships with our suppliers by streamlining payment processes, increases trust between parties and reduces the risk of disputes. It has come in very handy for us as Nigeria undergoes a cashless policy across board.

When selecting a payment system for an e-commerce business, it's crucial to consider factors like security, ease of use, speed, and cost. The needs of both customers and the business itself must also be taken into account. By carefully choosing the right payment system, e-commerce businesses can set themselves up for success and growth.

Tackling Food Waste in Nigeria with E-commerce

Nigeria, a land of vibrant culture and rich history, is facing a major problem of food waste. Despite the fact that tons of food go to waste daily, many people still struggle to access food. However, there is a solution that can tackle this issue and save money for all. 

Online grocery delivery companies, such as Easyshop Easycook and other e-commerce businesses, are leading the fight against food waste. These companies provide a platform for fresh food to be delivered directly from the farm to the table, saving produce from being wasted on the farms or in wholesale markets due to infrastructure challenges like bad roads, lack of storage facilities and affordable cold chain vehicles. 

These delivery companies use various platforms, including websites, mobile apps, and social media, to connect farmers with consumers. They not only tackle food waste but also create jobs, empower people, add value, and create wealth through e-commerce. Small business owners who source directly from farmers have also become processors or manufacturers, eliminating food adulteration and offering easy-to-cook local foods. 

Food waste is a major challenge in the agriculture supply chain in many African countries. Although the number of businesses in this sector is increasing, they face infrastructure challenges that make operating expensive. Addressing this requires government intervention, community involvement, and a collective effort. 

E-commerce can play a significant role in reducing food waste by improving supply chain efficiency and reducing the amount of surplus food that goes to waste. One way e-commerce can do this is by connecting producers with consumers in real-time, allowing for more accurate forecasting of demand and reducing the amount of produce that is over-grown and goes unsold. This helps to ensure that food is produced and sold in a timely manner, reducing the risk of spoilage and waste.

Furthermore, e-commerce companies can play a role in reducing food waste by promoting more sustainable and conscious consumer behavior. For example, some e-commerce companies like Easyshop Easycook offer customers the option to purchase products in bulk, reducing packaging waste and allowing customers to only purchase what they need, reducing the amount of food that is wasted at the household level. E-commerce can also help to promote food waste reduction by making it easier for consumers to access surplus food from farmers and food producers, reducing the amount of food that is left unsold and ultimately discarded.

According to the Food and Agriculture Organization of the United Nations (FAO), up to 30% of food produced in Africa is lost due to inadequate storage, transportation, and marketing systems. By providing farmers with access to new markets and reducing food waste, e-commerce has the potential to increase the availability of food and improve food security in Africa.

As Nigeria takes advantage of the African Continental Free Trade Area agreement, it is crucial to recognize the role of the fresh grocery delivery companies in the agricultural value chain. Supporting them is vital to reducing food waste, creating wealth, and ensuring the success of the agreement. Whether small or big, these companies are essential to a thriving agriculture industry and must be supported to succeed.