Paystack's Zap is not just an ordinary neobank that helps Nigerians to transfer money from one bank to another the ways OPay, PalmPay, Kuda Bank and Moniepoint does it. It's an inaugural consumer-focused mobile application, more like a remittances service, that allows Nigerians to fund their Zap account by linking their Nigerian bank accounts to Zap using Paystack’s direct debit infrastructure, linking their debit or credit cards from any country, or depositing money directly into a Paystack-Titan account.
How Zap works
The Paystack's Zap works as an instant money transfer service within Nigeria. It's also working as a remittances service that allows Nigerians abroad to link their debit/credit card to the app and instantly send money home.
Remittance
Although, Paystack's CEO Shola Akinlade said that "Paystack is not yet entering the remittance market." However, he demonstrated how Zap works with remittance service at the company’s Evening With Paystack. Akintola sent money from his Bank of America (BoA) card to a Nigerian bank account almost instantly using Zap.
Local Bank Transfer
Zap lets people send money to any Nigerian bank in just 10 seconds. However, to use the platform for this service, you need to add money to your Zap account. You can simply do this by linking your Nigerian bank account through Paystack’s direct debit infrastructure or by putting money directly into a dedicated Paystack-Titan bank account. Akintola emphasize Paystack's partnership with Titan Trust Bank, and the partnership has been extended to Zap to help keep customers' money safe and make sure everything runs smoothly.
Another method to link bank account to Zap is through Paystack's Vault. Meanwhile, only commercial bank accounts are allowed linked via this method. Mobile money platforms and fintechs like OPay, PalmPay, and Moniepoint are not supported.
Features of Paystack's Zap
1. Swift Inter-Bank Transfer: Bank-to-bank transfer within Nigeria that happens using Zap will be completed in under 30 seconds. This eliminates delays that's common among traditional banks in Nigeria.
2. Linking of Multiple Bank Account: Customers can link multiple commercial bank accounts to their Zap account to facilitate instant funding through Paystack's direct debits and vault without the need to navigate individual banking apps. Meanwhile, keep in mind that neo-banks like OPay, PalmPay, and Moniepoint are currently not supported for linking.
3. Remittance service: Zap allows users to link any country's debit/credit card to instantly fund their account. Well, Akintola said their ideal regarding that is for Nigerians living abroad to come/visit home and make transfers seamlessly using Zap, without needing to convert their foreign currency to naira. They can easily link their foreign currency card to Zap and let the magic happens.
4. Reliability and User-friendly Onboarding: Zap is built on Paystack's robust infrastructure, which processed three billion API requests with minimal downtime in Q4 2024. With this backing, Zap gives a dependable transfer experience, and offers a hassle-free setup process, ensuring users can quickly start making transfers.
Using Paystack's Zap
To use Zap, you must first complete your "Know Your Customer (KYC)" verification. Once all the KYC checks are completed, you can begin to use Zap by sending or depositing money on the app.
Documents needed to verify Zap
- Bank Verification Number (BVN)
- National Identification Number (NIN)
- Proof of Address like Utility bills
Once these documents are accurately provided, your account limits will be fully upgraded.
Zap account limits
Tier 1 Limit: If you verify your identity with your BVN, you will be able send up to ₦50,000 per day and keep a maximum balance of ₦200,000 in your Zap account.
Tier 2 Limit: If you verify your Zap account by providing a selfie photo of yourself, your home address, and your valid NIN, you will be able to send up to ₦200,000 per day and hold up to ₦500,000 in your Zap account.
Tier 3 Limit: If you're able to complete full address verification using a utility bill that's validity is within the range of 3 months, you will be able to transfer up to ₦5 million daily and keep a balance of ₦100 million in your Zap account.
Zap's Pricing and Fees
Another thing you need to take note while using Zap is the Zap's Fees and Pricing:
It's important to note that depositing ₦10,000 via a linked bank account costs ₦35, withdrawing ₦9,900 incurs a ₦25 fee, making the total cost of depositing and withdrawing ₦10,000 be ₦50 charges.
The pricing and fees make Zap to be more expensive than OPay, PalmPay, and Moniepoint, which are already known for being cheaper options for bank transfers in Nigeria.
