The verdict in three sentences
For an online store in Lagos in 2026, Paystack is the checkout to activate first: a 1.5 % + 100 NGN local fee capped at 2,000 NGN, and T+1 settlement to your account. Integration via hosted checkout (redirect) takes 2 to 3 developer-days and removes card-entry friction. Observed result: roughly +18 % mobile conversion versus card entry alone.
Paystack vs raw card entry: what changes for the store
The average Lagos shopper pays from a phone on a sometimes unstable 3G/4G connection. A raw card form (16 digits + date + CVV + 3D Secure) multiplies abandonment. Paystack instead offers a hosted page where the customer confirms in a few taps, including bank transfer and USSD options.
| Criterion | Paystack NG | Raw card form |
|---|---|---|
| Merchant fee | 1.5 % + 100 NGN | 2.5 to 3.5 % + fixed fees |
| Fee cap | 2,000 NGN | None |
| Settlement | T+1 | T+2 to T+7 |
| Payment steps | 3 taps | 6 to 8 fields |
| 3D Secure required | Handled | Yes |
| Mobile conversion | Baseline +18 % | Baseline |
| Integration time | 2 to 3 days | 3 to 5 days |
Conversion figures are a 2026 order of magnitude observed on comparable stores; confirm against your own data.
API integration steps
The recommended approach is hosted checkout: you initialize a transaction server-side, redirect the customer to the returned authorization URL, then confirm the order via webhook.
| Step | Action | Estimated time |
|---|---|---|
| 1 | Paystack account + API keys | 0.5 day |
| 2 | Initialize transaction endpoint | 0.5 day |
| 3 | Redirect + success/failure return page | 0.5 day |
| 4 | Confirmation webhook + signature | 1 day |
| 5 | Sandbox tests + real amounts | 0.5 day |
Golden rule: never confirm an order from the browser return page alone. The source of truth is the server webhook, which must be idempotent.
Paystack NG vs Wave CI: the fee table
| Item | Paystack NG | Wave CI |
|---|---|---|
| Local fee | 1.5 % + 100 NGN | 1 % |
| Fee cap | 2,000 NGN | None applied |
| International fee | 3.9 % + 100 NGN | n/a |
| Customer fee | 0 NGN | 0 FCFA |
| Currency | NGN | FCFA (XOF) |
| Settlement | T+1 | T+1 |
On a 6,000 NGN ticket, Paystack charges 1.5 % + 100 NGN = 190 NGN. On the FCFA equivalent, Wave charges a flat 1 % with no fixed fee.
Mini case study
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Tunde, who runs a fashion store in Lagos (Ikeja), handles 300 orders/month at an average basket of 8,000 NGN, i.e. 2,400,000 NGN monthly revenue. With Paystack, his fees are roughly 1.5 % + 100 NGN per order, about 160,000 NGN/month. His previous card gateway at 3 % cost him 288,000 NGN: he saves around 128,000 NGN/month. Adding the conversion gain (+18 %), revenue could climb to 2,832,000 NGN, nearly 432,000 NGN in extra monthly sales.
FAQ
How long does it take to integrate Paystack checkout?
Budget 2 to 3 developer-days for a standard store, including the webhook and tests. Hosted checkout is fastest because it avoids handling sensitive card data.
Does the customer pay fees with Paystack?
No, the customer pays 0 NGN. Only the merchant pays 1.5 % + 100 NGN, capped at 2,000 NGN in 2026.
Does Paystack work without a card?
Yes. Beyond cards, Paystack supports bank transfer and USSD, which suits shoppers who prefer not to enter card details.
Can I offer Paystack AND cards?
Yes, and it is recommended for international customers. Paystack is the default local rail, with card as fallback for the diaspora.
When does the money reach my account?
Settlement is T+1: funds captured one day are available the next, easing cash flow versus the T+2 to T+7 of some card processors.
Let's talk about your project. We integrate Paystack into your store in 2 to 3 days, reliable webhook included. 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.
