Beginning Wednesday, OPay, the Nigerian fintech platform, has increased its transaction fees for bank transfers. Previously, the app charged N10 when users made transactions from their OPay wallets to regular bank accounts. This fee will no longer apply, instead, the app will now charge N45 for the first transaction a user makes in a day. Subsequent transactions will incur a flat 1% processing fee.
Hi Everyone, we sincerely apologise for the inconvenience we caused you by our lack of notice on the 2% bank transfer fee. We understand that this was not communicated appropriately and sincerely apologise for this.
— OPay (@OPay_NG) November 5, 2019
For example, if an OPay user wants to send N100,000 from the app to a regular bank, instead of paying N10 as the transaction fee, the user will now pay N1000 (1%) as a processing fee. But if this is the first transaction that the user is making that day, they would pay N45 as transaction fee.
Interestingly, the new rates are actually a revision. On Tuesday, the company had originally raised the charge to 2% and a minimum rate of N15 per transaction. In simpler terms, users would have paid 2% transaction fees for any transfers to banks.
But after negative reactions from OPay users the company was forced to reconsider the rate, setting it at 1% and a minimum of N45 per transaction.
OPay is not the first fintech to increase transaction charges in the last few months. Carbon did the reverse in August when it introduced charges for inbound transactions. The company announced a 1% transaction fee for debit card transfers to Carbon Wallets. It used to be free. But Carbon, at the time, said the zero-fee approach was no longer sustainable as more people used its Wallet feature. However, it continues to support a flat N10 charge for transfers from Wallets.
“This particular service came at a significant cost to us as we pay fees to your debit card issuer and payment processors for every card top-up,” the company wrote.
But unlike Carbon, OPay’s decision to increase transaction fees comes as a shock to its users who are spoiled with discounts. For one thing, users were not informed before the change was made. Customers found out about the original 2% charge on their own over the last two days when they tried to make transfers.