What is a Paystack Starter Business?
Entrepreneurs who do not yet have a business registration document or a corporate bank account are able to begin their growth journey as Paystack Starter Businesses. Paystack allows such businesses to validate their ideas with real customers, while they get everything they need in order to prepare to scale.
Starter Business Requirements
To use Paystack as a Starter Business, you'll need:
- A Nigerian Personal Bank Account
- Your Bank Verification Number (BVN)
- A valid ID (any one of the following)
- National ID
- Driver's Licence
- Permanent Voter's Card
Are there transaction limits?
While there's no limit to how much your customers can pay per transaction, there's a maximum collections limit per Starter Business.
The total revenue a Starter Business can receive is NGN 2 million, after which payouts to the business will be placed on hold - this means that after you've reached the revenue limit, settlements to your bank account will be suspended. To remove the hold and continue receiving settlements, the business will need to upgrade and submit registration documents to become a Paystack Registered Business.
How to increase the collections limit
Merchants who opt in to verifying their phone numbers with Truecaller receive an increase in the collections limit to NGN 3 million. You can perform this phone number verification at any time. Once the 3 million limit is reached, there can be no further extensions to the limit, and payouts will be put on hold until the business upgrades and submits documentation as a Registered Business.
What's the difference between a Starter and a Registered Business?
Starter Businesses enjoy nearly all of the benefits of Paystack Registered Businesses, with a few key exceptions. The graphic below highlights all the differences between a Paystack Starter Business and a Paystack Registered Business.