How much does Paddy cost?
Paddy currently costs 1% of the transaction value, capped at ₦2,000 per transaction. The fee is charged to the seller only, so buyers pay nothing for payment protection. I review pricing as Paddy grows, so these are current rates, not a permanent promise.
For example, an ₦85,000 order costs the seller ₦850 in fees. A ₦500,000 order costs ₦2,000, not ₦5,000, because the fee is capped.
Why the seller pays and the buyer doesn't
I made Paddy's fee seller-side for a simple reason: the buyer is already taking the step of paying upfront instead of using pay-on-delivery. Charging the buyer a separate fee would add more friction to the transaction. The seller is the one gaining a completed sale, so the cost sits with them.
How Paddy compares
Most payment protection alternatives charge both the buyer and seller, often at higher rates and without a clear maximum. For Nigerian social commerce, I think payment protection should have simple, predictable pricing. With Paddy, the seller pays one fee, and that fee has a cap.
— Rashad, building Paddy
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