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E-commerce- the concept of buying and selling online- has become increasingly popular since the advent of the internet. With Africa’s huge young population and increasing internet penetration and usage, e-commerce is a growing phenomenon. 

With more and more people doing business online, payment systems have become increasingly important to secure and make online transactions as seamless as possible. With online payment systems, customers have been able to securely make payments during e-commerce transactions, while businesses have been able to receive money quickly. 

The concept of online payment systems is an interesting one. In this article, we will explain what online payment systems are and their importance in today’s digital world. We will also look at the different types of online payment systems and factors to consider when choosing the right one for your online business. 

You can never overstate the importance of the internet to businesses. With the internet, small or big businesses have tremendous opportunities to reach more people and sell to more customers. 

To make use of the great opportunities that the internet offer, businesses must continue to look to expand their online presence. Online payment systems facilitate great e-commerce strategies. This article explores the world of online payment systems and how Fincra plays its part. 

What are online payment systems?

Online payment systems are platforms or companies that facilitate digital financial transactions. Let’s take Fincra, for example; Fincra is an online payment system that enables online payments. 

We do this by processing information between banks (customer and business’ banks) and assisting in the transaction process. 

The origin of concept of online payment systems dates back to the advent of the internet. With the internet came e-commerce, the idea of selling and buying online. 

There’s no defining documentation of the history of e-commerce, so many different versions exist. The most popular version of the history of e-commerce has English inventor Michael Aldrich as the first person to sell online. Aldrich used the Teleputer, which he built with PC, TV and telecom networking technologies. He modified a domestic television and connected it to a real-time multi-user transaction processing computer via a telephone line to connect business-to-business systems, which he sold around Europe. 

However, the use case for Aldrich’s invention did not expand beyond his prototype. 

In the early 90s, Charles M. Stack created an online bookstore using a dial-up bulletin board- using a telephone to connect to computers. Again, this wasn’t mainstream. 

The widely adopted version of e-commerce kicked off in 1994 when the World Wide Web emerged. The New York Times has an article headlined ‘Internet is Open‘ reporting on the first established case of e-commerce. 

Since then, e-commerce has evolved in several ways and forms and has become the norm. As the use cases for e-commerce expanded, so did the demand for more advanced online payment systems.

With millions of people worldwide doing business online, there was a need for secure transactions which is why online payment systems have become a vital component of e-commerce. 

Thanks to online payment systems, you and I have been able to securely make purchases online. Online payment systems use encryption technology to protect sensitive information, such as card numbers and personal details, during the transaction process.

The solution to allow secure payments has allowed us to make purchases from our computers and mobile devices conveniently. Convenience has been the best offering from e-commerce, saving us time and effort to get to a physical store before making purchases. 

Online payment systems have also enabled fast and efficient check processes, optimising customers’ experience and helping businesses close transactions quickly. 

These systems also allow businesses to accept payments from different methods, providing variety that will enable businesses to satisfy more customers. 

The best payment online payment systems 

There are a lot of online payment systems that businesses use to facilitate their online payments. 

Before discussing a slew of those payment systems, we have to discuss Fincra. 

Fincra, an online payment system

Fincra is an online payment system that facilitates payments for online businesses. We provide the infrastructure that enables businesses to collect online payments securely. 

We are not the only online payment system in Africa 

Online payment systems in Nigeria and Africa

E-commerce is growing rapidly in Africa due to a host of factors, including the continent’s young population that has adopted internet technology and mobile devices. According to the International Trade Administration, Africa will surpass half a billion e-commerce users by 2025. 

Some of the most popular online payment systems in Africa include: 

  • Fincra

Fincra is an online payment system that facilitates payments for online businesses. We provide the infrastructure that enables businesses to collect online payments securely. With Fincra, businesses can collect online payments from customers’ credit/debit cards, bank transfers, PayAttitude and mobile money.

  • M-Pesa

M-Pesa is a mobile money transfer platform that allows users to send and receive money, pay bills, and purchase goods and services through their mobile phones. Mobile money is widespread in Kenya and Tanzania and growing in Nigeria. 

  • Paystack

Like Fincra, Paystack is a Nigerian payment platform that enables businesses to accept customer payments using credit/debit cards, bank transfers, and mobile wallets.

  • Flutterwave

Flutterwave is another popular payment platform that allows businesses to accept customer payments online. Flutterwave has achieved unicorn status, one of the few African startups to do so. 

Factors to consider when choosing an online payment system

Do you have a business and sell online or intend to start selling online and need a payment system to help you facilitate payments? There are several factors to consider when choosing an online payment system. 

We look at those factors. 

  • Payment methods

An excellent online payment system has different payment methods for businesses to collect payments. Fincra, for example, can allow businesses to accept payments via credit/debit cards, bank transfers, and mobile money. 

With the option of paying with cards, bank transfers and PayAtittude, customers have different payment methods for their convenience. Having just one payment method will not help businesses to serve customers who do not have that means of payment. 

  • Integration 

Ease of integration is also a factor when choosing an online payment system. With Fincra, integration is simple on any website and platform. We offer our systems via the Fincra dashboard or API.

  • Support

We have an excellent and always-available support team that can help businesses to integrate our system on their website. 

  • Security

Security is why online payment systems have become vital in the e-commerce sector. Online payment systems have ensured that online payments and transactions are secured. 

Without security assurance, customers will not have the trust to input their card information online to make payments. Online payment systems use encryption technology to protect sensitive information during the transaction process. 

Fincra has world-class security and encryption to protect all data from fraud. We recently received two certifications from the world’s best-known standards for information security, cybersecurity and privacy protection and business continuity practices of organisations. These certifications prove that everyone’s data is safe with us. 

  • Multicurrency 

Businesses that want to reach global customers must choose payment systems that facilitate transactions in different currencies. 

It is also essential for international businesses that want to break into local markets. For example, the likes of Google are having problems retaining their Nigerian customers since Nigeria’s apex bank banned using local cards for international transactions. An online payment system that can process local cards would solve this problem. 

How to integrate Fincra’s online payment system on your website

Integrating Fincra’s online payment system on your website follows a simple step. 

Step 1: Create a free account with Fincra; while creating this account, you provide information about your business and other requirements. 

Step 2. Get into Fincra Test environment, upload the required KYC documentation and await approval. 

Step 3: After approval, choose from a range of integration options; via dashboard or APIs and follow the steps to set it up.

Step 3: Test the payment system before going live with the payment system. 

Step 4: Go live and start accepting payments with Fincra

Step 5: Monitor transactions to make sure everything is working as it should be.


E-commerce is the present, and the future and businesses must be ready to maximise all the opportunities that the internet presents. Businesses must work with online payment systems to secure their online payments to maximise these opportunities.  

Fincra is here to help you offer secure payment methods and channels to your customers, providing them with a convenient and safe way to make purchases online. 

Create a free account or speak to a Fincra sales representative to use Fincra as an online payment system.

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