The verdict in three sentences
The headline rate on the pricing page tells you almost nothing about your real margin. What matters is the net cost once you add the fixed fee per transaction, any cap, the payout fee to your bank and the FX markup. On average volume, Paystack's capped 1.5% + NGN 100 often wins for local Naira collection, but an aggregator like Flutterwave earns its keep the moment you need multi-currency and card in one contract.
What are the real fees per provider in 2026?
The figures below are 2026 estimates for an e-commerce merchant in Nigeria and Kenya. Always check your contracted grid: rates fall with volume.
| Solution | Variable rate | Fixed fee | Fee cap | Settlement |
|---|---|---|---|---|
| Paystack (local card) | 1.5% | NGN 100 | NGN 2,000 | T+1 |
| Flutterwave (local) | 1.4% | none | none | T+1 |
| International card | 3.9% | none | none | T+2 to T+3 |
| Payout / transfer | 1% | NGN 10-50 | NGN 100-250 | same day |
An aggregator costs more per percent but saves you from integrating three separate APIs and reconciling three flows. That is the real trade-off: transaction cost versus integration and maintenance cost.
How do you compute the true net cost?
The classic trap: compare 1.4% and 1.5% and stop there. You have to model on a typical basket and a real monthly volume.
| Line item | Paystack capped | Flutterwave 1.4% |
|---|---|---|
| Average basket | NGN 8,000 | NGN 8,000 |
| Fee per transaction | NGN 220 | NGN 112 |
| 1,000 transactions/month | NGN 220,000 | NGN 112,000 |
| Monthly payout fees | ~NGN 5,000 | ~NGN 5,000 |
| Total monthly cost | NGN 225,000 | NGN 117,000 |
| Annual cost | NGN 2,700,000 | NGN 1,404,000 |
On a NGN 8,000 basket the cap barely bites, so Flutterwave's flat 1.4% is cheaper; but above roughly NGN 12,000 per basket Paystack's NGN 2,000 cap starts winning. Model your own basket before choosing.
Mini case study
Awa, who runs a cosmetics shop in Lagos, takes 800 orders a month at NGN 8,000 average basket, i.e. NGN 6.4M. On Flutterwave at 1.4% she pays NGN 89,600 in fees. On Paystack capped she pays about NGN 176,000 on that basket size. She keeps Flutterwave for low-value local baskets and switches to Paystack only for her high-ticket bundles above NGN 15,000 where the cap kicks in. Net result: she saves roughly NGN 60,000 a month by routing per basket size.
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FAQ
Is Paystack's cap really NGN 2,000?
As a 2026 order of magnitude, local card is 1.5% + NGN 100 capped at NGN 2,000, so the cap protects you on high-value baskets. It does not apply to international cards.
Why does Flutterwave look cheaper on small baskets?
Because it has no fixed fee on the local flow, so on a NGN 8,000 basket 1.4% flat beats 1.5% + NGN 100. Above the cap threshold the maths flips.
What about payout and FX?
Payouts add NGN 10-50 per transfer and FX markup runs 1-3% on cross-currency settlement. On diaspora sales those two lines quietly erode margin, so watch them.
How do I cut fees as volume grows?
Ask for a tiered grid, split flows by payment method, and negotiate volume discounts that typically start around NGN 5M monthly. Simple routing can save 15-30% of total fees.
Become a Kolonell referral partner. Know merchants bleeding on payment fees? Refer them: the referral commission is 12% on an e-commerce project, 15% + 5% recurring on a showcase site, 10% on a marketplace and 8% on institutional work.
Let's talk about your project. We audit your payment mix and wire the cheapest routing for your volume. 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.
