Gateway selection criteria in order of importance: 1) Country and payment method coverage — does it cover the countries your users are in, with the channels they actually use (mobile money, bank transfer, card, USSD)? 2) API quality and documentation — can you build and maintain an integration without constant support tickets? 3) Reliability and settlement timing — what is the real uptime, and when does money arrive in your account? 4) Pricing — transaction fees, monthly fees, chargeback fees, FX markup. 5) Compliance — is the gateway licensed by the relevant regulator (CBN, CBK, BoG)? Do not start with pricing — start with coverage.
| Criterion | What to Evaluate | Why It Matters |
|---|---|---|
| Country coverage | Does it process NGN, KES, GHS, ZAR, TZS, UGX natively? | Processing in a currency you don't support = FX losses or blocked payments |
| Payment channels | Card, mobile money (M-Pesa, MTN, Airtel), bank transfer, USSD | Missing mobile money in Kenya = 30-50% of users can't pay |
| API quality | Working sandbox, good error messages, webhook testing, SDK maintenance | Poor API = permanent engineering tax on your team |
| Uptime | Real-world uptime history (status page, third-party monitoring), not SLA document | Gateway downtime = lost revenue. SLA credits don't cover customer churn. |
| Settlement timing | T+1, T+2, T+3? Daily, weekly? Net or gross? | Slower settlement = higher working capital requirement |
| Pricing | Transaction %, caps, monthly fees, chargeback fees, FX markup | All gateways have similar pricing at low volume; differences matter at scale |
| Regulatory standing | CBN licence (Nigeria), CBK PSP licence (Kenya), BoG EMI licence (Ghana) | Unlicensed gateways can be shut down with no warning |
| Support | Response time to disputes and technical issues. Dedicated account manager at what volume? | When Paystack freezes your account at 2am before payday, support quality matters |
| Market | Primary Recommendation | Reason |
|---|---|---|
| Nigeria only | Paystack | Best developer experience, CBN-licensed, all payment channels |
| Nigeria + pan-Africa | Paystack + Flutterwave | Flutterwave adds more country coverage beyond core Paystack markets |
| Kenya only | Paystack (M-Pesa channel) or IntaSend | Both support M-Pesa; Paystack if you plan to expand to Nigeria/Ghana |
| East Africa multi-country | Pesapal or DPO Pay | Better East African coverage than Paystack |
| Tanzania | Selcom | Deeper Tanzanian mobile money (Vodacom, Tigo, Airtel TZ) |
| Global (non-African) | Stripe | Paystack does not serve non-African markets |
| B2B FX / cross-border | Fincra or Grey | Better FX rates and compliance for cross-border B2B payments |
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See payment gateway due diligence checklist for CTOs for the full pre-contract checklist.
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