The verdict in three sentences
An aggregator (Paystack, Flutterwave, PawaPay) cuts integration time but stacks fees a direct API avoids. The tipping point depends on monthly volume: past roughly NGN 8-13m in monthly sales, direct integration at ~1 % repays its development cost in 8 to 14 months. Below that, the aggregator stays the rational choice.
The fee structure nobody compares
Aggregators show an attractive "all-in" rate, but you must look at the flat per-transaction fee, any cap and payout fees. On small baskets, the flat fee bites hard.
| Channel | Fee % | Flat fee | Cap |
|---|---|---|---|
| Generic aggregator | 1.8-2.5 % | NGN 100 | none |
| Paystack | 1.5 % | 0 | NGN 2,000 |
| Flutterwave | 1.4 % | 0 | variable |
| Direct MTN MoMo | ~1 % | 0 | none |
| Direct bank transfer | ~0.5 % | NGN 50 | none |
On an NGN 3,000 basket, an aggregator at 2.2 % + NGN 100 takes NGN 166 (5.5 %), versus NGN 30 direct. The gap explodes on small amounts.
When direct integration pays off
Direct integration has a one-off development cost, amortised against monthly fee savings. Here's the 2026 order of magnitude.
| Monthly sales | Fee saving/month (direct vs aggregator) | Amortising NGN 1.6m dev |
|---|---|---|
| NGN 3m | ~NGN 39,000 | 41 months |
| NGN 8m | ~NGN 104,000 | 15 months |
| NGN 13m | ~NGN 169,000 | 9 months |
| NGN 20m | ~NGN 260,000 | 6 months |
| NGN 30m | ~NGN 390,000 | 4 months |
Below NGN 8m/month the aggregator stays cheaper once dev time is counted. Above NGN 13m, direct wins clearly.
Mini case study
Ibrahim runs an electronics store in Lagos. He does NGN 12m in monthly sales via an aggregator at 2.2 % + NGN 100, over about 900 transactions. Monthly fees: 12,000,000 × 2.2 % + 900 × 100 = 264,000 + 90,000 = NGN 354,000.
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With direct integration at ~1 %, fees drop to NGN 120,000/month. Saving: NGN 234,000/month. A NGN 1.6m development pays back in under 7 months, then it's pure gain.
FAQ
Is the aggregator always more expensive?
No. Below NGN 8m in monthly sales, direct integration's time and dev cost aren't recovered. The aggregator stays the pragmatic choice, especially at launch.
Can you mix both approaches?
Yes, and it's common: direct integration for high-volume local rails, an aggregator for international cards and niche methods. You optimise each flow separately.
Does the flat fee really change things?
On small baskets, massively. At an NGN 3,000 average basket, a NGN 100 flat fee adds an effective 3.3 %. A low-ticket shop should negotiate or go direct.
How long does a direct integration take?
Allow 3 to 8 weeks depending on the provider and how many webhooks you must secure. The 2026 cost ranges NGN 900k-2.3m depending on complexity (refunds, splits, multi-account).
Let's talk about your project. We calculate your tipping point and integrate the right aggregator/direct mix. 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.
