The verdict in three sentences
For a Lagos merchant going single-provider, Flutterwave edges Paystack on the headline rate at roughly 1.4%, versus Paystack's 1.5% + 100 NGN capped at 2 000 NGN (2026 order of magnitude). But Paystack's fee cap makes it cheaper on high-value baskets, and settlement speed plus reliability can flip the decision. This comparison prices the real cost on a 25 000 NGN basket and gives you the volume threshold where switching providers pays off.
Collection fees: the head-to-head
The figures below are 2026 order-of-magnitude estimates for a standard merchant account, before volume negotiation. Always check your contract sheet.
| Criterion | Paystack | Flutterwave |
|---|---|---|
| Local card/transfer fee | ~1.5% + 100 NGN | ~1.4% |
| Fee cap per transaction | 2 000 NGN | Varies |
| Cost on 25 000 NGN basket | ~475 NGN | ~350 NGN |
| Settlement | T+1 | T+1 to T+2 |
| Payout to bank | Included / low | Varies |
| International cards | Higher % | Higher % |
| API / payment links | Yes | Yes |
On a 25 000 NGN basket the unit gap of ~125 NGN looks trivial. Scaled by volume it reshapes your cash flow.
What it means over a full month
| Monthly volume | Transactions (25 000 basket) | Paystack fees | Flutterwave fees | Monthly gap |
|---|---|---|---|---|
| 2 500 000 NGN | 100 | ~47 500 NGN | ~35 000 NGN | ~12 500 NGN |
| 5 000 000 NGN | 200 | ~95 000 NGN | ~70 000 NGN | ~25 000 NGN |
| 10 000 000 NGN | 400 | ~190 000 NGN | ~140 000 NGN | ~50 000 NGN |
| 20 000 000 NGN | 800 | ~380 000 NGN | ~280 000 NGN | ~100 000 NGN |
The switching threshold: once you clear ~200 transactions a month, the annual gap tops 300 000 NGN. At that point, standardising on the cheaper provider — or negotiating — is no longer optional.
Mini case study
Chidi, who runs a sneaker store in Lagos (Ikeja), processes 320 baskets of 25 000 NGN a month, i.e. 8 000 000 NGN. On Paystack at ~1.5% + 100 NGN he pays about 152 000 NGN/month. Moving core collections to Flutterwave at ~1.4% brings him to about 112 000 NGN/month. Saving: ~40 000 NGN/month, or ~480 000 NGN/year — enough to fund a quarterly Meta Ads push. He keeps Paystack as a second rail for customers who prefer it.
FAQ
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Is Flutterwave always cheaper than Paystack in Lagos?
On the headline rate, often yes (~1.4% vs 1.5% + 100 NGN). But on high-value baskets Paystack's 2 000 NGN fee cap can make it cheaper, so run the math on your average basket.
Should I offer both providers at checkout?
Yes. Offering both reduces cart abandonment, while you can default to the cheaper rail to steer cost down.
What is the real settlement delay?
Expect T+1 with Paystack and T+1 to T+2 with Flutterwave as a 2026 order of magnitude. One day of difference on multi-million volumes affects working capital.
At what volume should I negotiate my rate?
In practice, above ~10 000 000 NGN collected per month you have leverage to ask for a 0.1-0.3 point cut. Below that, the standard sheet applies.
Do bank payout fees matter?
Yes, and many forget them. Include payout and any percentage withdrawal cost in your total cost, not just the collection fee.
Let's talk about your project. A well-integrated multi-rail checkout can save you hundreds of thousands of naira a year. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
