Social media has been buzzing since Paystack announced Zap, a consumer app that offers secure, fast, and reliable bank transfers for Nigerians and visitors to Nigeria. Opinions are divided online. Some netizens believe that Zap solves a unique major problem for foreigners in Nigeria, while others see this new product as an attempt at another replica.
What is Zap, and What Does It Do?
A few weeks ago, Nigerian Customs officers intercepted undeclared $1,154,900 and SR135,900 from Saudi Arabia at Mallam Aminu Kano International. Spending and moving money can be a hassle for Diaspora Nigerians and foreigners visiting Nigeria, especially since the amount of money you can bring into the country is limited to $10,000.
Zap aims to solve the problem above.
Setting Up the Zap App
Personally, setting up the Zap app was easy; however, a user reviewed on the Google Play Store that they couldn’t access the app because they didn’t have a referral code. This big flaw could hinder its adoption process, as nobody wants to be online begging early subscribers for referral codes.
The app’s interface is simple, minimalistic, and straightforward, allowing users to navigate through its features easily. It responds quickly to inputs without any noticeable lag, which is impressive as it is in its adoption phase with over 1,000 downloads. While no customer support was available during the registration, it was a seamless process.
How to Register
Here is a step-by-step guide on how to register on the Zap app:
Step 1: Download the Zap app on your Android smartphone via the Google Play Store and your iOS smartphone via the App Store.
Step 2: Open the app and click on Create Account.
Step 3: On the onboarding page, enter your phone number.
Step 4: A verification code will be sent to the number you entered via SMS or WhatsApp. Fill it in the box provided.
Step 5: Create your profile with basic information about yourself, such as your legal first and last name, date of birth, and email address. Once you’ve filled in your details, click on “continue."
Step 6: Enter your invite code. We’ll earn a token if you use our invite code <input code>. Once you have filled in the correct code, click on Continue.
Step 7: Select account type. In this section, you are to choose whether you are a Nigerian or a visitor in Nigeria. The Nigerian Account option allows you to make payments using your Zap balance, Nigerian bank account, or credit/debit cards. This option requires BVN, NIN, and address verification. The Visitor Account option lets you make payments using your debit or credit card. This option requires verification with a valid ID.
Step 8: After step 7, the page below will appear on your screen, indicating that your account setup is done. Click on Secure your account.
Step 9: Set a PIN to secure your account from unauthorised use. It will log in and authorise transactions on your Zap app.
Step 10: Confirm your PIN. Input the same PIN used in step 9.
Step 11: Secure your account by enabling biometric authentication. This extra security step personalises your app use. There are two options here: enable biometrics or skip for now. Click on Enable biometrics.
Step 12: A page will appear on your screen. This is the home page, which shows your balance and other features. On the screen, there is a message that says, “Verify your email address.” Click on it.
Step 13: A page will appear on your screen. At the bottom of the screen, you will see “Send verification code.” Click on it.
Step 14: You will get a verification code in your provided email address. Check it and fill in the box on your screen.
Step 15: Now, you are almost ready.
Account Linking
After setting up my account, the first thing I did was to link a bank account. This was a seamless experience I’ve ever had. I’d been worried I wouldn’t complete the process because I didn’t have a debit card on me, but it worked. I find this could be helpful for people seeking a quick fix on the go, or who do not have active ATM cards.
To link your bank account, I needed to make a non-refundable transfer of ₦50 to a Paystack-Titan account, as seen in the screenshot below.
While this was a better option for me, it could be inconvenient for users who want to link multiple accounts, as Zap charges ₦50 per account. The app supports linking up to 23 commercial bank accounts, excluding Neobanks like Opay, Palmpay, and Moniepoint, leaving prospective users who primarily use them out. If I had to link multiple accounts, I'd find it a bit tedious, especially when I think the BVN can spool all linked accounts.
During its demo at the company's Evening With Paystack, Akinlade transferred money from his Bank of America card to a Nigerian account on Zap proving that users can link debit or credit cards from any country to Zap.
Transactions
After completing registration and getting tiered, I tried to make transfers to verify the “10 seconds” transfer speed claim. Since I’m a new user, I am on tier 1 with a ₦200,000 balance limit and 50,000 available to spend.
I tried topping up my Zap account directly from my GTBank account with ₦10,000, and while confirming and reviewing my top-up details, I noticed a text that said, “Please review your top-up details carefully. Once confirmed, this action cannot be undone.”
I don’t want to make transactions on an app that increases my blood pressure whenever I try to top up my account and transfer from it. But I summoned courage and completed the transaction because my details were correct. I hit a roadblock here because I got a notification on the app that the bank account I linked is not active.
The screenshot below shows that my linked account was inaccessible.
I tried again the next day and it worked. I transferred a sum of ₦10,000 from my linked GTBank account and was charged a transaction fee of ₦35 directly from my GTBank account. Later in the day, I couldn’t top up my Zap account because the “Add money” option on the menu page wasn’t responding, and it also didn’t load my account balance.
After a few hours, I then transferred ₦9,000 from my Zap account to my GTBank account and incurred a transfer fee of ₦25 from my Zap account. This means that for withdrawals and transfers, you are charged ₦50; this is minus the ₦50 levy fee on all transfers from ₦10,000 and above.
The table below shows a breakdown of Zap’s transaction fee according to their support articles.
Although the “swift transfer within 10 seconds" claim seemed accurate, transacting on Zap is more expensive than neobanks, which have made transactions affordable and easy for users.
The pricing might not be an issue per se since the ideal target audience are visitors and Diaspora Nigerians in Nigeria. In Akinlade’s speech, he mentioned that Zap's ideal scenario is for people from abroad to come to Nigeria, make transfers using Zap, and make immediate delivery a priority for people sending money to Nigeria from abroad.
KYC
Completing the know-your-customer (KYC) form can be a nightmare in Nigeria, but it was a simple and hassle-free process on Zap. Users cannot top up their accounts or send money on the app until they’ve completed their KYC.
Tier-1 users verify only with their bank verification number (BVN). They can only transact ₦50,000 with a maximum balance of ₦200,000. This could be an unnecessary for users who transact a large volume of money daily. It means they’d have to upgrade their account to tier 2 or 3 to use the app, which might take some time.
Tier-2 users verify with a selfie, physical address, and National Identification Number (NIN). The transactional amount rises to ₦200,000 daily, with a ₦ maximum balance of 500,000.
Tier-3 users can send up to ₦5 million daily and hold up to ₦100,000 in their accounts after their accounts have been verified.
Speed and Performance
Now, the network provider you use will play a huge role in how fast Zap operates, but even under the influence of fluctuating network signals, the app operates smoothly, with a fast speed. However, so far the app itself tends to malfunction, with some options not working when needed. This makes Zap unreliable. I might not count on it to make payments after eating at a restaurant.
Features and Functionality
As I mentioned before, the app has a simple layout and minimal design. This might help its adoption among foreigners and Diasporas in Nigeria as an everyday tool, that "when you open it, the only thing you see is sending money out" without going through multiple steps."
But as a Nigerian living in Nigeria, I’d love to perform all my transactions on one app, and my existing banks can do that.
Zap vs. OPay vs. Palmpay
At Zap's launch, Shola Akindele said, "For years, we have been building infrastructure for merchants, and now we are excited to show you how this same infrastructure can transform your everyday experiences." He further said, "Zap is not trying to be a neobank. It is focused on one thing: fast bank transfers. Making payments as reliable and effortless as possible."
Where Opay and Palmpay operate as a financial ecosystem, Zap focuses on its core mission: fast bank transfers. While these neobanks are Zap's direct competitors, they provide a wide range of services catering to Nigeria's banked and unbanked. Moving from app to app to perform basic transactions like bill payment and airtime top-up is stressful and unproductive in a fast-paced world.
This could be a setback for Zap.
Security and Data Protection
Since Zap is a Paystack product, it exists under Paystack’s domain, which raises speculations about its regulatory status. It operates under Paystack’s domain and adheres to Paystack’s regulatory compliance. The screenshot below shows that Zap is willing to share users’ data with regulatory or other public authorities.
Speed and Performance
The network provider you use will play a huge role in how fast Zap operates, but even under the influence of fluctuating network signals, the app operates smoothly and rapidly.
Features and Functionality
As I mentioned, the app has a simple layout and minimal design. This might help its adoption as an everyday tool among diaspora Nigerians and visitors to Nigeria: "When you open it, the only thing you see is sending money out without going through multiple steps."
Amidst the ongoing discussion on social media, Tobi Asu Johnson announced on X that Zap Africa’s legal team would contact Paystack for using the trademarked name.
This was after Zap Africa wrote on X, "There is only Zap in Nigeria and Africa."
A lot is going on for Zap at the moment.
In conclusion, the Zap app might not see much activity from me. I already have cheaper alternatives with an equally simple user interface where I can perform all my financial transactions in one click. Will I continue to use the Zap app after this review? Maybe not.