The verdict in three sentences
In 2026, Paystack charges 1.5 % + NGN 100 (capped) and Flutterwave about 1.4 % local, while M-Pesa runs tiered fees via Daraja and Stripe sits at 2.9 % + $0.30 for international cards. The cheapest local rails are still the mobile-money operators; card gateways cost more but unlock cross-border sales. The right mix combines rate, caps, settlement and your country's user base.
Consolidated grid — Anglophone Africa
The values below are a 2026 order of magnitude for a standard merchant account. Always confirm your contract grid.
| Gateway | Country | Merchant fee | Settlement |
|---|---|---|---|
| Paystack | NG, GH, ZA, KE | 1.5 % + NGN 100 (cap 2,000) | T+1 |
| Flutterwave | 30+ countries | ~1.4 % local | T+1 to T+2 |
| M-Pesa | KE, TZ | tiered (Daraja) | Same day - T+1 |
| MTN MoMo | GH, UG | ~1 % | T+1 |
| Airtel Money | TZ, UG, KE | 0.5 - 1.5 % | T+1 |
| Hubtel | GH | ~1.95 % (aggregator) | T+1 to T+2 |
Caps and international gateways
To sell internationally, cards and Stripe sit on top of local mobile money. Here are indicative caps and fees.
| Gateway | Fee | Transaction cap | Note |
|---|---|---|---|
| Paystack | 1.5 % + NGN 100 (cap 2,000) | high | Cards + transfer |
| Flutterwave | ~1.4 % local | high | 30+ countries |
| Stripe | 2.9 % + $0.30 | high | International cards |
| M-Pesa | tiered | ~KSh 250,000 | Daraja API |
| MTN MoMo | ~1 % | GHS band | E-levy residual |
| Airtel Money | 0.5-1.5 % | ~TSh 3,000,000 | Lipa |
On NGN 20,000,000/month, moving card volume from Stripe-style international pricing to a local gateway at 1.5 % can save well over NGN 100,000/month depending on the international share.
Mini case study
Amina, an online seller in Lagos who also ships to the diaspora, collects NGN 20,000,000/month: 60 % Paystack local, 20 % Flutterwave, 20 % international cards. Her fees: Paystack NGN 12,000,000 x 1.5 % = NGN 180,000 (before cap), Flutterwave NGN 4,000,000 x 1.4 % = NGN 56,000, international cards NGN 4,000,000 x 2.9 % = NGN 116,000. Total roughly NGN 352,000/month. By steering more local buyers to the cheapest capped rail and reserving high-fee card processing for the diaspora, she targets a 15 % fee cut, about NGN 52,800/month, i.e. NGN 633,600/year.
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| Project type | Sale commission | Recurring commission |
|---|---|---|
| Showcase site | 15 % | 5 % |
| E-commerce | 12 % | 5 % |
| Marketplace | 10 % | — |
| Institutional | 8 % | — |
FAQ
Which gateway is truly cheapest? Local mobile-money rails and capped card gateways like Paystack are cheapest for local volume; always weigh your country's user base into the decision.
Should I offer multiple gateways? Yes: a multi-gateway checkout raises successful-payment rate by 10-20 % depending on customers and bank uptime.
Why is Stripe more expensive? Because it handles international cards at 2.9 % + $0.30; reserve it for the diaspora and customers outside your local rails.
Do caps block large sales? On standard accounts, yes beyond certain per-transaction limits; a verified merchant account raises them.
How much does a business-getter earn? 12 % on an e-commerce sale plus 5 % recurring; on a FCFA 2,000,000 project that is FCFA 240,000 upfront.
Let's talk about your project. We design your fee-optimized multi-gateway checkout, and we welcome you into our referral program. 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.
