The verdict in three sentences
In Nigeria, Paystack collects at 1.5 % + 100 NGN capped at 2,000 NGN; in Ghana, Flutterwave runs around 1.4 %; in Kenya, M-Pesa till sits at 0.5-1.5 % by tier. On a store collecting 5,000,000 NGN/month, the gap between an effective 0.4 % and 1.5 % is meaningful margin. Choosing the right provider mix per country is a financial decision, not just a technical one.
2026 collection fee grid
| Country | Solution | Collection fee | Transaction cap | Settlement |
|---|---|---|---|---|
| Nigeria | Paystack | 1.5 % + 100 NGN (cap 2,000) | 10 M NGN | T+1 |
| Nigeria | Flutterwave | 1.4 % | 10 M NGN | T+1 |
| Ghana | Flutterwave | 1.4 % | high | T+1 |
| Ghana | MTN MoMo | 1.5-2.0 % | high | T+24 h |
| Kenya | M-Pesa till | 0.5-1.5 % | tiered | T+0/T+1 |
| Kenya | Flutterwave | 1.4 % | high | T+1 |
These rates are a 2026 order of magnitude for merchant collection; real grids are negotiated by volume. Above 10,000,000 NGN/month, a 0.2 to 0.4 point rebate is often obtained.
Francophone comparison (FCFA zone)
| Country | Provider | Fee | Cap | Settlement |
|---|---|---|---|---|
| Senegal | Wave | 1.0 % | 2,000,000 FCFA | T+1 |
| Mali | Orange Money | 1.5-2.0 % | 3,000,000 FCFA | T+2 |
| Benin | Moov Money | 1.8 % | 1,500,000 FCFA | T+2 |
Wave's ~1.0 % collection in Senegal is the regional benchmark, but it is not available everywhere. The Paystack 2,000 NGN cap makes large Nigerian transactions very competitive: on a 500,000 NGN sale, the fee caps at an effective 0.4 %.
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Mini case study
Ibrahim sells farm equipment in Kano, average basket 35,000 NGN, 180 orders/month for 6,300,000 NGN collected. Staying 100 % on a 1.8 % provider, he pays 113,400 NGN/month in fees. By routing card-heavy payments to Paystack (effective ~0.9 % after the cap) for 40 % of volume, his blended fee drops to 1.4 %, or 88,200 NGN. Saving: ~25,000 NGN/month, roughly 300,000 NGN/year, for simply adding a provider at checkout.
FAQ
Can I pass fees on to the customer? Technically yes, but past a 1.5 % visible surcharge, cart abandonment climbs. Most merchants absorb the fee and optimize the provider mix instead of billing it.
Is M-Pesa always cheapest? On small Kenyan amounts, its tiered till pricing is hard to beat. On larger tickets, the Paystack cap in Nigeria often produces a lower effective rate.
How do I know which provider to favor? Look at your real customer split: if 60 % already pay via a 1.8 % provider, adding a 1.0-1.4 % option only shifts volume if the UX is equally simple.
Do fees fall with volume? Yes: above 10,000,000 NGN/month, most providers grant 0.2 to 0.4 point rebates. You must ask explicitly; it is never automatic.
Let's talk about your project. We wire the right mix of Paystack, Flutterwave and M-Pesa into your checkout to protect your margin. 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.
