The 4 best Monnify alternatives for virtual accounts

Virtual accounts are a modern invention that have practically changed the way businesses in Nigeria manage their payments. While they’ve been available in Europe for a while, virtual accounts are relatively new in Nigeria’s financial landscape.

They were first launched in Nigeria and popularized by Monnify by TeamApt (now Moniepoint) and Providus bank.

Virtual accounts appear like standard traditional bank accounts you’d open as an individual, but they are not directly open for a customer in the bank. Instead, virtual accounts are typically created by fintech companies in partnership with banks. These companies are then given a range of those accounts to offer to their business clients.

This article isn’t to explain that Monnify is not good. In fact, Monnify remains a strong player in the market for virtual accounts. Nevertheless, many other providers now offer virtual accounts. This means more options and features for businesses who want to optimize their payment processes.

So, even with Monnify’s solid reputation, you may have specific business needs, pricing differences or want specific features so your business might benefit from exploring other options.

Let’s take a look at 4 best Monnify alternatives for virtual accounts including:

• Paystack
• Fincra
• Sterling Bank
• OnePipe

Paystack

In partnership with Wema, Access and Zenith banks, Paystack introduced its virtual accounts in 2020 to help smoothen the payment transfer process for businesses and their customers. In 2023, they partnered with Titan Trust Bank to create a new breed of virtual accounts called Paystack-Titan.

Key features of Paystack virtual accounts

Free to get started: Creating a Paystack Virtual Account doesn’t require any initial fees.

Competitive transaction costs: Paystack charges a straightforward 1% transaction fee with a modest cap of #300 for your dedicated virtual accounts.

Lightning-fast with Paystack-Titan: Experience exceptionally fast transaction speeds, with almost all (99%) of Paystack-Titan transfers confirming within just 8 seconds.

Flexible for your needs: Paystack Virtual Accounts are available for both one-time checkout payments into temporary virtual accounts using Pay with Transfer (PwT) and recurring payments for specific customers (using dedicated virtual accounts).

Customer-friendly: Customers are likely already familiar with the bank transfer process, and simply need to select “Paystack-Titan” as their destination bank.

Refund protection: Paystack offers swift refunds in the rare instances of payment issues, reducing hassle and potential frustration for your customers.

Also read: 5 best Paystack alternatives for card payment in Nigeria.

OnePipe

OnePipe is a financial tech company that partners with banks to provide businesses with a toolbox of financial services. They offer virtual accounts services as part of their larger package of payment and banking tools, all accessible through a user-friendly developer platform.

OnePipe is one of the efficient Monnify alternatives for businesses that:

• Need a wide range of financial features beyond virtual accounts.
• Want to create their own unique financial experiences within their products or platforms.
• Have development resources to take advantage of OnePipe’s API-focused approach.

Key features of OnePipe virtual accounts

Easy integration: OnePipe lets you choose the financial features you need – virtual accounts, payments, credit, and more – and integrate them easily into your existing systems.

API-driven: OnePipe’s platform prioritizes developers, providing a high level of customization for tech-savvy businesses. Businesses will likely need development resources to take full advantage of the possibilities.

Multiple bank options: OnePipe offers virtual accounts with Fidelity, Polaris, Providus, VFD, and SunTrust Bank, providing choice and flexibility.

Immediate settlement with PaywithTransfer: This feature makes it easy to accept payments, regardless of whether your business is online, in-store, or both. Any money you receive through your virtual account is instantly transferred to your preferred bank account. This provides a more transparent reconciliation process for the business.

Transaction fees: Transaction fee is 0.5% of all transactions (capped at N500). There are no other extra or hidden charges.

Rewards & loyalty: OnePipe can help you design customer loyalty programs, offering rewards like cashback, discounted fees, and special offers. This can be attractive for boosting customer engagement and retention.

Sterling Bank

Sterling Bank offers virtual accounts for businesses looking to manage their finances digitally. Their system is user-friendly, allowing customers to easily create virtual accounts with their phone number as a unique identifier. The process is documented here.

This creates a unique virtual account number initiates the wallet creation process. After execution, a virtual account is generated, serving as the customer’s Nigeria Uniform Bank Account Number (NUBAN). While virtual accounts are a valuable service, Sterling Bank places a stronger emphasis on its OneBank Virtual Dollar Card. This card offers several benefits:

Easier international payments: Customers can use the card to pay for online purchases and subscriptions in US dollars, simplifying international transactions.

Easier funding: Customers can easily top their virtual dollar card with funds directly from their naira account.

Security advantage: Virtual cards offer an extra layer of security with encryption and two-factor authentication security compared to using physical cards.

To learn more about Sterling Bank’s virtual account pricing, transaction fees, and features, you would have to contact [email protected].

Fincra

Fincra offers a highly customizable approach to virtual accounts, making them a good option for businesses looking for specific banking relationships and features beyond simple payment collection. Fincra stands out as a strong alternative to Monnify for businesses that:

• Value a customized setup to match their specific banking needs or desired integrations.
• Need features beyond simple virtual accounts (like identity verification).
• Conduct business internationally and need virtual accounts in multiple currencies.

Key features of Fincra virtual accounts

Account setup: Creating an account doesn’t require any initial investment, making it a budget-friendly option for businesses as they explore their virtual account needs.

Virtual account pricing: Transaction fees are straightforward – you pay 1% per transaction, with a maximum fee of ₦1,000. This makes it easy to predict and manage your virtual account costs. There’s a monthly minimum $2,000 fee for creating 0-2000 accounts, $5,000 for 2,001 – 5,000 accounts. For 5001+ accounts, you’d have to contact their sales team. Find more information about their virtual account pricing here.

Settlement times and currencies: Local NGN transactions generally settle instantly, allowing quick access to funds.  While cross-border transactions may take up to 2 days, this is still within reasonable expectations for international transfers. It supports US, UK, and EUR virtual accounts alongside NGN accounts, making them a good fit for businesses with international payment needs.

Unique features: Unlike providers that lock you into a single bank, Fincra lets you switch between Providus, Wema, Globus, and VFD for your NGN virtual accounts.

Its identity verification solutions can be a substantial benefit for businesses needing to comply with regulations or reduce fraud.

By the way, we built Kolo to help you manage all your bank accounts.

There is no “one-size-fits-all” best alternative

Every one of these Monnify alternatives for virtual accounts have their own strengths. Choosing the most ideal virtual account provider depends on your specific business needs and priorities.

So, during your selection process, consider these key factors: does it support a bank you prefer or already use, does it require special integration, does it have more features if you need it such as international payments, identity verification, or built-in loyalty programs.

Also, compare transaction fees, setup costs, and settlement times to find the most cost-effective solution for your business volume.