The verdict in three sentences
In Nigeria in 2026, your cost of collecting payment can vary sharply depending on which aggregator you wire into your checkout. Paystack and Flutterwave sit close on headline rates (roughly 1.4–1.5%), but caps, transfer fees and settlement timing quietly reshape the real number. Before choosing, you must model the true cost on your actual basket, not trust the advertised rate.
The real collection rate per aggregator
The two dominant merchant rails in Nigeria — Paystack and Flutterwave — publish different structures, joined by DPO and local bank transfer options. Here are 2026 orders of magnitude for a verified merchant account.
| Provider | Collection fee | Fee on ₦15,000 | Payout | Cap |
|---|---|---|---|---|
| Paystack | 1.5% (local card) | ₦225 | T+1 | ₦2,000 cap |
| Flutterwave | 1.4% | ₦210 | T+1 to T+2 | ₦2,000 cap |
| DPO / Cellulant | 2.5 – 3.5% | ₦375 – ₦525 | T+2 to T+3 | per contract |
| Bank transfer (direct) | ₦10 – ₦50 flat | ₦50 | instant | N/A |
| USSD | ~₦20 flat | ₦20 | instant | N/A |
Paystack built its reputation on clean developer experience, while Flutterwave leans on broader multi-country reach. Both cap card fees at ₦2,000, which matters enormously on high-value baskets.
Margin impact: simulating volume
The real story is the monthly cumulation, not the single transaction. Take a store doing 1,000 orders of ₦15,000 per month, or ₦15,000,000 in revenue.
| Provider | Unit fee | Monthly fees (1,000 tx) | Annual fees |
|---|---|---|---|
| Paystack | ₦225 | ₦225,000 | ₦2,700,000 |
| Flutterwave | ₦210 | ₦210,000 | ₦2,520,000 |
| Bank transfer | ₦50 | ₦50,000 | ₦600,000 |
Between card processing and steering customers to bank transfer, the annual gap exceeds ₦2,000,000 — enough to fund a salary or restock. That is why the winning 2026 play is to offer several methods at checkout while quietly defaulting to the cheapest.
Mini case study
Awa runs a cosmetics store in Lagos. She collects 600 orders per month at ₦18,000 average basket, or ₦10,800,000 monthly. Today 70% of customers pay by card (at 1.5%) and 30% by bank transfer (₦50 flat).
Current fees: on ₦7,560,000 by card that is ₦113,400; on ₦3,240,000 by transfer, ₦9,000. Total: ₦122,400/month.
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If she shifts 50% of card volume to bank transfer with a "Pay by transfer in one tap" banner, card fees drop to ₦56,700 and transfer rises to ₦13,500. New total: ₦70,200, saving ₦52,200 per month, or ₦626,400 a year. Without losing a single sale.
FAQ
Is Paystack always the cheapest?
For card collection the two are close, but Paystack's 1.5% capped at ₦2,000 can beat Flutterwave on high baskets. On low-value orders bank transfer and USSD crush both on cost.
How much does withdrawing collected money cost?
Transfers to your bank are usually free or a small flat fee, but international payouts and instant settlement can add 1 to 2 points. This line item sometimes doubles the headline cost.
What is the daily merchant cap?
Expect around ₦2,000,000 caps on card fees per transaction and higher daily volume ceilings for verified business accounts. Beyond that you need enhanced KYC documentation.
How fast do I receive my money?
Paystack typically settles T+1, while Flutterwave ranges T+1 to T+2. For a small store's cash flow, that extra day matters.
Should I use an aggregator at all?
An aggregator simplifies multi-method integration through one API but adds 1 to 2.5 points of commission. Worth it without a tech team, costly at high volume.
Let's talk about your project. We integrate Paystack, Flutterwave and bank transfer with smart routing to the cheapest rail. 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.
