Paystack vs Flutterwave: Which payment platform is best for Nigerian Business Part 2?

 Best payment platform for Nigerian businesses

Introduction and Recap from Part 1

Choosing the best payment platform for business in Nigeria can be challenging. Giving the amount of options that are available and the lack of deep dive information about them. Welcome to Part 2 of our comprehensive comparison between the two best payment platform for businesses in Nigeria.

Paystack and Flutterwave are Africa’s leading payment gateways. In the previous section, we delved into the history, pricing, services, security, compliance measures, and customer support of both platforms. These elements set the foundation for understanding how each of these payment solutions can benefit your business.

In this blog, we will wrap up by evaluating performance and reliability, ease of integration and setup, and provide real-world case studies and success stories to give a complete picture of the best payment platform for businesses in Nigeria.

If you are here for the first time, Read the first part of our analysis here before proceeding. Click here to jump to the final verdict.

1. Performance and Reliability Between Paystack and Flutterwave

1.1 Uptime and Downtime Records

How reliable is Paystack and Flutterwave ?

Both Paystack and Flutterwave have maintained strong uptime records. They ensure their systems remain online and operational for merchants to remian the best platform for businesses in Nigeria. Paystack, as part of its acquisition by Stripe, benefits from the infrastructure and reliability of one of the world’s leading payment processors. Reports indicate minimal downtime, providing businesses with consistent access to payment gateways.

However, Flutterwave has experienced some occasional downtimes, particularly in certain countries where the company is still expanding its reach. Nevertheless, it maintains an impressive uptime record across most of its supported regions, ensuring merchants can rely on its service regularly.

1.2 Transaction Success Rates

In terms of transaction success rates, both platforms perform admirably. Paystack, with its close integration with local banking networks, boasts high success rates for both local and international transaction. This makes it the best payment platform for businesses in Nigeria for some category of users. It has been praised for maintaining transaction reliability, particularly in markets where payment systems can be complex.

Flutterwave is similarly effective, especially with international transactions due to its broader African footprint. Its integration with over 30 countries ensures that merchants can reach a wide audience. With transaction success rates are typically very high. While Flutterwave may face slight challenges with some local payments in less mature markets. It remains a reliable choice for cross-border transactions.

1.3 Speed and Efficiency of Transactions

For speed, Paystack is generally fast, with transactions completing in a few seconds. User reviews often highlight the platform’s seamless integration with business systems and the quickness of payment processing. However, some complaints arise concerning the slower settlement times for payouts to merchant accounts, especially on days with high transaction volume.

Flutterwave, on the other hand, is also regarded for its speed and efficiency. Transactions are generally processed in real-time, and the platform provides merchants with quick access to their funds. Subsequently making it suitable for businesses that require immediate cash flow. Some users have reported that Flutterwave handles cross-border transactions slightly faster than Paystack, due to its broader infrastructure.

2. Ease of Integration and Setup

2.1 Paystack Integration Process

Paystack has developed a reputation for being easy to integrate into various platforms. From setting up an e-commerce store, a mobile app, or a SaaS platform. Its integration process is designed to accommodate both tech-savvy developers and business owners with limited technical expertise.

2.1.1 Paystack Setup step-by-step guide

How to create a Paystack account

Step 1: Create a Paystack Account
To begin, users need to sign up for a free account on the Paystack dashboard. The registration process is straightforward, requiring essential business information and verification.

Step 2: Customize Payment Options
Once logged into the dashboard, you can customize payment methods based on your business needs. Paystack allows you to choose from a variety of options such as card payments, bank transfers, and USSD.

Step 3: API Key Generation
To integrate Paystack into your website or app, developers can generate API keys from the dashboard. These keys are essential to enable transactions securely.

Step 4: Integrate API/SDK
Developers can use Paystack’s well-documented APIs or SDKs to begin accepting payments. Paystack provides SDKs for popular languages and platforms such as PHP, Node.js, and JavaScript.

Step 5: Test the Integration
Before going live, Paystack offers a sandbox environment to test transactions. Once the integration passes testing, you can switch to the live environment and start receiving payments.

Step 6: Monitor Transactions
After setup, businesses can monitor transactions via the Paystack dashboard, which provides real-time data on payment flows.

2.1.2 Paystack Documentation and Developer Support

Paystack’s documentation is highly regarded for its clarity and detail. The platform provides step-by-step guides, example codes, and troubleshooting tips to help developers integrate Paystack seamlessly into their systems. Their developer documentation covers:

  • API references for every aspect of the payment process (transactions, subscriptions, invoicing, etc.).
  • Guides for customizing payment pages.
  • Detailed instructions for handling callbacks and webhooks to automate payment confirmations.

Additionally, Paystack offers responsive developer support via email, live chat, and community forums. Users have praised the documentation and support. They state them as key factors in the ease of integrating Paystack into various platforms.

2.2 Flutterwave Integration Process

Flutterwave, like Paystack, offers a seamless integration process. Hence, it is easy for businesses to start accepting payments with minimal technical know-how. Its setup process is user-friendly and designed to cater to a wide range of businesses, from startups to large enterprises. Below is an outline of how to integrate Flutterwave into your platform.

2.2.1 Flutterwave Setup step-by-step guide

How to create a Flutterwave account

Step 1: Sign Up and Create an Account
To start, users need to create a Flutterwave account by registering on the platform’s official site. This step involves submitting basic business information for account verification. Once approved, users gain access to their dashboard.

Step 2: Get API Keys
Once the account is set up, developers can obtain API keys (public and secret keys) from the dashboard. These keys are crucial for integrating Flutterwave into your business’s system.

Step 3: Choose a Preferred Payment Method
Flutterwave offers various payment options, such as card payments, bank transfers, mobile money, and USSD. Users can select the appropriate method based on the business model and region of operation.

Step 4: Use SDKs or API
Flutterwave provides SDKs and APIs in several programming languages (PHP, JavaScript, Python, etc.). Thereby, developers are able to implement custom payment solutions. You can use these tools to connect your website, app, or software to Flutterwave’s payment gateway.

Step 5: Test the Integration
Flutterwave provides sandbox environment where you can test the payment process without handling real transactions.

Step 6: Go Live
After testing, you can switch to live mode, allowing real-time transactions to be processed. The live setup is similar to the sandbox environment, ensuring that the transition is smooth.

Step 7: Monitor Transactions
Flutterwave provides a comprehensive dashboard where businesses can monitor transaction data, settlements, and payment flows. This dashboard is easy to navigate and helps business owners track their financial activity in real-time.

2.2.2 Flutterwave Documentation and Developer Support

Flutterwave’s documentation is highly praised for its clarity and depth, providing developers with step-by-step instructions to integrate the platform smoothly. The Flutterwave Developer Documentation includes:

  • Comprehensive API references.
  • Tutorials for integrating with popular platforms like Shopify, WooCommerce, and WordPress.
  • Guides for setting up webhooks for event notifications.
  • Sample codes in various languages to help streamline the integration process.

Moreover, Flutterwave provides developer support through multiple channels, including email, live chat, and a growing community of users and developers who offer assistance. The platform’s support team is available to address technical issues. This makes it easy for developers to troubleshoot any challenges they may encounter.

In summary, Flutterwave offers a user-friendly and comprehensive integration process supported by detailed documentation and reliable developer support. The combination of various SDKs, APIs, and helpful resources makes it an excellent choice for businesses looking to integrate a secure and scalable payment solution. Likewise when chhosing the best payment platform for your business in Nigeria.

2.3 Ease of Use for Developers and Merchants

When comparing the ease of use for Paystack and Flutterwave, both platforms offer simple tools for developers and merchants, though they cater to slightly different needs. Paystack is widely praised for its user-friendly API and documentation, making integration smooth and ideal for local businesses in Nigeria. Its dashboard is intuitive, allowing merchants to manage transactions easily with minimal technical skills, and the onboarding process is quick.

Flutterwave, while similarly easy to use, is better suited for businesses handling cross-border transactions. Its API supports multiple currencies and payment methods, but its broader functionality requires more effort in setup. The platform is excellent for merchants dealing with international payments, though onboarding can take slightly longer due to stricter KYC procedures.

In essence, Paystack is favored for local use, while Flutterwave is ideal for businesses looking to scale across Africa.

3. Case Studies and Success Stories

3.1 Businesses Using Paystack

3.1.1 Success Stories

Who uses Paystack?

Several businesses across different sectors have thrived using Paystack for their payment processing needs. One notable success story is Filmhouse Cinemas, a leading cinema chain in Nigeria. By integrating Paystack, Filmhouse improved its ticketing system, allowing customers to book and pay for tickets seamlessly online.

This resulted in increased customer satisfaction and reduced bottlenecks at ticket counters. Another success is Taxify, a transport company in Nigeria. By using Paystack, Taxify was able to efficiently handle multiple payment options, improving its operations and boosting transaction volumes.

Additionally, PiggyVest, a popular savings and investment app in Nigeria, credits Paystack’s secure and reliable transaction platform as a major enabler of its success. Paystack helped PiggyVest process thousands of transactions daily, giving users confidence in the app’s ability to handle their finances efficiently.

3.1.2 Challenges Overcome

Many businesses have also overcome significant challenges with Paystack’s help. Okra, a fintech company providing API integration for financial services, leveraged Paystack’s flexible payment processing capabilities to handle varying customer needs. Subsequently, this has allowed Okra to scale quickly across different sectors, overcoming the common challenge of unreliable payment methods.

Another challenge that businesses face is delayed payments and reconciliation issues. Paystack has mitigated these concerns by offering detailed transaction monitoring through its robust dashboard, allowing businesses like Jobberman (Nigeria’s leading job site) to improve their internal processes and track payment flow more efficiently. This feature has helped businesses significantly reduce errors in payment processing and improve cash flow management.

3.1.3 Known Issues

What problem does Paystack solve?

Despite Paystack’s many strengths, some businesses have reported challenges while using the platform. One common issue is the transaction settlement delay, particularly during peak transaction periods.

While Paystack generally offers timely settlements, some merchants have reported delays, especially with large volumes or same-day settlement requests. This has led to occasional disruptions in cash flow, although Paystack continues to work on improving settlement speed.

Another challenge faced by some users is the lack of a native refund feature. While refunds can be processed manually, this can be cumbersome for businesses with high volumes of transactions. Merchants have expressed the need for more streamlined refund management.

Additionally, integration for international businesses can be more complicated, as Paystack is primarily optimized for African markets, especially Nigeria. This means businesses looking to expand globally may find the platform’s international support limited compared to competitors like Flutterwave.

Overall, businesses using Paystack benefit from its reliability and ease of use, though some specific challenges, such as settlement delays and refund processes, still need addressing for certain sectors.

3.2 Businesses Using Flutterwave

3.2.1 Success Stories

Who uses Flutterwave?

Flutterwave has empowered numerous businesses across Africa and beyond by simplifying cross-border payments. For instance, a notable success story is Uber, which leveraged Flutterwave to scale its payment operations across Africa. By integrating with Flutterwave, Uber was able to process payments seamlessly in multiple currencies, enabling the ride-hailing giant to expand its services across multiple African countries.

Another major success is Flywire, a global payments company. Flywire partnered with Flutterwave to facilitate international payments, enabling institutions in sectors like education and healthcare to accept payments from Africa easily. This partnership helped Flywire navigate complex currency exchanges and regulatory frameworks, opening up new markets for its business.

Additionally, Wakanow, a leading online travel agency in Africa, credits Flutterwave for helping them expand across multiple countries by simplifying payment processes. With Flutterwave’s reliable infrastructure, Wakanow could accept payments in various currencies, allowing them to serve customers across Africa and beyond without worrying about payment failures or delays.

3.2.2 Challenges Overcome

Flutterwave has helped many businesses overcome challenges in handling payments, particularly when it comes to cross-border transactions. One example is Sendwave, a remittance service that faced difficulties in processing payments efficiently across African borders. Albeit Flutterwave’s payment infrastructure, Sendwave was able to solve the problem of inconsistent payment gateways and improve transaction success rates across different currencies and regions.

Another company that overcame significant challenges with Flutterwave is Shuttlers, a bus-sharing startup in Nigeria. Shuttlers struggled with reliable payment collection from users, particularly in a market with limited access to online payment methods. By integrating Flutterwave’s mobile money services, Shuttlers was able to offer more payment options and streamline collections, resulting in increased user adoption and business growth.

3.2.3 Known Issues

What problem does Flutterwave solve?

While Flutterwave is a robust platform, there have been some challenges reported by businesses. One recurring issue is transaction failures during peak periods. Some users have reported that during high-traffic events, such as Black Friday or other sales campaigns, Flutterwave’s system can occasionally experience downtime or delays, which can affect transaction success rates. Although the company continues to improve its infrastructure, some businesses have found it necessary to implement backup systems to avoid potential disruptions.

Another known challenge involves settlement times. While Flutterwave generally processes transactions efficiently, some businesses have reported delays in settling funds, especially when dealing with cross-border payments. This can cause cash flow problems for businesses operating on tight schedules or with high transaction volumes.

Furthermore, currency exchange fluctuations can sometimes affect businesses using Flutterwave. Since the platform supports payments across multiple currencies, exchange rate changes can lead to discrepancies in the amounts received, particularly for businesses without hedging strategies in place. This remains a challenge for companies managing significant international transactions on a daily basis.

In summary, while Flutterwave has helped numerous businesses scale across borders with its versatile payment solutions, challenges related to transaction failures, settlement times, and currency exchanges are some areas where businesses have faced difficulties. However, its overall reliability and support for cross-border transactions make it a preferred choice for many African and global companies.

4. Pros and Cons

4.1 Paystack

What is the pros and cons of using of Paystack?
Advantages of using PaystackDisadvantages of using Paystack
At Platformadviser, We’ve experienced great success with Paystack, completing numerous transactions, all of which have gone smoothly.A drawback was that same-day settlement was either unavailable or only offered at an additional cost.
For more complex situations, there are other ways to integrate. Their webhook feature is also very useful for helping with payment verification issues.Certain browsers have extensions that block scripts from loading, which can make it difficult to track down bugs when customers report payment issues.
from a user “I really like the ease of integration as they offer numerous SDKs and APIs for easy integration & support for popular programming languages.Immediate payouts for your earnings aren’t available, and not all banks support receiving payments in dollars.
A user reviewed that “Using Paystack was a fantastic experience; I easily made payments for my school fees and other types of transactions.”Reliance on internet access: Paystack requires an internet connection to process payments, which means accepting payments may not be possible during internet connectivity issues.
pros and cons of using paystack

4.2 Flutterwave

What is the pros and cons of using of Flutterwave?
Advantages of using FlutterwaveDisadvantages of using Flutterwave
It continually develops new and amazing features for businessesThey easily go against their own terms and policies. Flutterwave has a continuous record of failed transactions due to one reason or the other.
It is very easy to set up and use. It also integrates many African mobile payment methods like orange money, MTN mobile money, express union, and even credit cards.Though flutterwave is in Africa, it is not available across Africa and some other countries which is a disadvantage because there are businesses that covers a lot of countries in sub Saharan Africa.
Accept online payments Easily receive online payments from around the world in different currenciesA user on capterra said “Their customer support are very annoying, when it comes to resolving especially urgent and important tickets.”
Payout & Transfers Experience effortless cross-border payouts and transfers in various currencies worldwide.most people are left in darkness in several aspects of using flutterwave, like how it handles international payments, manages currency exchanges, and deals with errors or issues users face during transactions. I believe users need clearer information and guidance on how to use it effectively.
pros and cons of using flutterwave

5. Final Verdict: Paystack vs Flutterwave – Which Platform is Best for Your Business?

When choosing best payment platform for businesses in Nigeria between Paystack and Flutterwave, it’s important to consider your business’s specific needs, size, and target market. Below is a comprehensive breakdown to help you decide which platform is better suited for your business in different scenarios.

5.1.1 Best payment platform for business in Nigeria: For Startups

Winner: Paystack

Paystack stands out as the ideal choice for startups, particularly those based in Africa. Here’s why:

  • Ease of Use: Paystack is known for its simple setup process, making it easy for new businesses to get started without technical complications. Also, It offers clear documentation and a user-friendly dashboard that helps startups get up and running quickly.
  • Affordability: Paystack’s pricing model is transparent, with no hidden charges, which is beneficial for businesses operating on a tight budget. They also have flexible payment options that work well for small-scale businesses with fewer transactions.
  • Local Focus: For startups that cater primarily to local markets in Africa, Paystack is more tailored to handle domestic payments. Its partnership with local banks makes it ideal for receiving payments in local currencies with ease.

In summary, Paystack’s user-friendly interface and affordability make it the best choice for startups just beginning their journey.

5.1.2 Best Payment Platform for Business in Nigeria: For Established Business

Winner: Flutterwave

For established businesses, especially those that are scaling and looking for more advanced features, Flutterwave takes the lead:

  • Scalability: Flutterwave offers a range of features designed to support high-volume businesses, including multi-currency payments, subscription billing, and in-depth analytics. This makes it an excellent choice for larger businesses that need advanced tools for growth.
  • Wide Range of Payment Options: Flutterwave supports numerous payment methods, including mobile wallets, bank transfers, and international cards. It can accommodate businesses with diverse customer bases.
  • Customizable Solutions: Flutterwave also allows for a high level of customization through its APIs, which gives established businesses the ability to create tailored payment experiences that align with their brand.

With its robust set of features and scalability, Flutterwave is the preferred platform for established businesses that need advanced tools and flexibility.

5.1.3 Best Payment Platform for Business in Nigeria: For International Transactions

Winner: Flutterwave

When it comes to handling international transactions, Flutterwave is the clear winner:

  • Global Reach: Flutterwave offers extensive support for cross-border payments, allowing businesses to receive payments from customers in multiple countries. They are integrated with global payment platforms like PayPal, making it easy for businesses to reach international customers.
  • Multi-Currency Support: Flutterwave supports multiple currencies, making it easy for businesses to process payments in different currencies and automatically handle currency conversions.
  • Wide Acceptance: Whether your customers are using Visa, MasterCard, or international bank transfers, Flutterwave ensures smooth processing for global payments. It’s designed to simplify receiving payments from international clients without the typical hassles.

For businesses that need to operate internationally, Flutterwave provides the tools and global reach to handle transactions seamlessly.

In Summary

  • For Startups, Paystack is the best choice due to its simplicity, affordability, and local market focus.
  • For Established Businesses, Flutterwave excels with its advanced features, scalability, and ability to handle high volumes of transactions.
  • For International Transactions, Flutterwave is the superior platform thanks to its multi-currency support, global reach, and integration with international payment systems.

Choose the platform that aligns with your business stage and goals to maximize efficiency and customer satisfaction.

5.2 Recommendations Based on Business Needs: Paystack vs Flutterwave

Choosing between Paystack and Flutterwave as they are the best payment platform for businesses in Nigeria can depend heavily on the specific needs of your business. Both platforms offer unique strengths that cater to different business models and objectives. Here’s a breakdown of recommendations based on various business needs:

1. For Businesses Focused on Local Transactions

Recommendation: Paystack

If your business primarily operates within local markets, especially in African countries, Paystack is the more suitable choice. Here’s why:

  • Seamless Local Payment Support: Paystack is designed to work efficiently within local markets, providing strong support for payments in local currencies, including the Nigerian Naira, Ghanaian Cedi, South African Rand, and others.
  • Better Integration with Local Banks: Paystack has partnerships with several local banks, ensuring faster, more reliable transactions and settlements.
  • Same-Day Settlements: For businesses that rely on quick access to funds, Paystack offers a same-day settlement option in some countries, which can help with cash flow.

Paystack is recommended for small to medium-sized businesses that are focused on local customers and need a payment solution that prioritizes local market conditions.

2. For Startups and Small Businesses

Recommendation: Paystack

For new businesses or startups that are still establishing themselves, Paystack’s simplicity and affordability make it a better option:

  • Ease of Setup: Paystack’s straightforward integration and easy-to-navigate platform make it perfect for entrepreneurs or small teams with limited technical resources.
  • Cost-Effective: Paystack’s pricing model is transparent and budget-friendly, with no hidden fees, which can help startups keep costs low while scaling.
  • User-Friendly Features: Paystack offers beginner-friendly features like easy onboarding, a smooth user interface, and essential analytics to help small businesses understand their payment flows.

Startups looking for a no-fuss, cost-effective way to manage payments should choose Paystack as it remain the best payment platform for businesses in Nigeria that are just starting up.

3. For Businesses with High Transaction Volume

Recommendation: Flutterwave

For businesses handling a large number of transactions or higher volumes of sales, Flutterwave is the better option:

  • Scalability: Flutterwave can handle high-volume transactions with ease, making it ideal for larger businesses that need a reliable, scalable solution.
  • Advanced Features: Flutterwave offers a suite of advanced tools like subscription billing, recurring payments, and detailed reporting, all of which are useful for managing complex payment flows at scale.
  • Customizable Payment Solutions: With robust API integrations, businesses can customize their payment processes to suit their specific needs and create a seamless customer experience.

If your business processes a large number of transactions, especially across different payment methods, Flutterwave is the better fit.

4. For International or Cross-Border Transactions

Recommendation: Flutterwave

If your business frequently deals with international customers or needs to process payments in multiple currencies, Flutterwave is the best choice:

  • Multi-Currency Support: Flutterwave enables businesses to accept payments in various currencies and automatically manage currency conversions, making international transactions simpler.
  • Global Reach: Flutterwave is integrated with major global payment providers, including PayPal, which allows businesses to easily receive payments from international clients across the world.
  • Smooth Cross-Border Transactions: With Flutterwave, businesses can cater to a global audience by offering a wide range of payment methods, including international credit cards, bank transfers, and mobile wallets.

For businesses looking to expand internationally, Flutterwave’s strong cross-border payment capabilities make it the ideal platform.

5. For Businesses Needing Flexible Payment Options

Recommendation: Flutterwave

If your business model requires accepting a wide range of payment types or offering customers multiple payment options, Flutterwave provides the flexibility you need:

  • Variety of Payment Methods: Flutterwave supports several payment options, including credit/debit cards, bank transfers, mobile wallets, and more, giving customers the flexibility to choose their preferred payment method.
  • Customizable Payment Pages: Businesses can create branded, customized payment pages, making the checkout process seamless for customers and aligning with the company’s branding.
  • Multiple Channels: Flutterwave allows businesses to accept payments via websites, mobile apps, social media, and even through WhatsApp, making it easier to capture payments across multiple channels.

Businesses needing diverse and flexible payment options will find Flutterwave’s comprehensive toolset more suitable.

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6. For Businesses Requiring Faster Settlements

Recommendation: Paystack

For businesses that prioritize quick access to their earnings, especially for daily operational cash flow, Paystack offers faster settlements in some countries:

  • Same-Day Settlements: Paystack provides same-day settlement options in select countries, making it a strong choice for businesses that need quick payouts to manage their finances effectively.
  • Reliable Local Processing: Paystack’s local focus ensures that transactions are processed swiftly, reducing delays that may affect day-to-day operations.

For businesses where fast access to funds is crucial, Paystack’s same-day settlement feature makes it the preferable option.

7. For Developers and Businesses Needing Custom Integrations

Recommendation: Flutterwave

If your business has complex payment needs or wants to create a fully customized payment experience, Flutterwave’s developer-friendly platform is more suitable:

  • Powerful API: Flutterwave offers a robust API that allows businesses to build highly customizable payment solutions, making it ideal for developers and businesses with unique payment flow requirements.
  • Custom Payment Solutions: Flutterwave’s extensive developer tools enable businesses to create tailored solutions for their specific needs, including custom checkout pages, seamless payment flows, and integration with other systems.
  • Comprehensive Documentation: Flutterwave provides in-depth documentation for developers, ensuring smooth integration and the ability to build powerful custom solutions.

For businesses that need flexibility in their payment setup, Flutterwave’s API and developer tools are the way to go.

Conclusion

  • Local businesses or startups: Paystack is the recommended platform, offering simplicity, cost-effectiveness, and faster settlements.
  • Larger, established businesses or international companies: Flutterwave excels, providing scalability, flexibility, and strong international support.
  • Businesses with specific needs, like high transaction volumes or custom integrations: Flutterwave also offers the advanced features and flexibility needed to handle complex payment scenarios.

When choosing the best payment platform for businesses in Nigeria, make sure it aligns with your business’s unique needs to ensure seamless payment processing and operational efficiency.

6. FAQs: Paystack and Flutterwave

We understand that when it comes to choosing the best payment platform for businesses in Nigeria or your business in particular, you might have several questions about the features, setup process, fees, and other details of both Paystack and Flutterwave. In our blog, we have already covered most of the essential aspects that users commonly inquire about, such as the best platform for startups, international transactions, and the comparison between the two services.

However, for any additional or more specific queries, both Paystack and Flutterwave have extensive FAQ sections where you can find in-depth answers to a wide range of questions related to their platforms.

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