The verdict in three sentences
Your aggregator decides three things: your per-transaction fees (1.4 to 1.5 % local), settlement speed (T+1) and the rails accepted. Paystack and Flutterwave both cover cards and bank transfers in Nigeria, but they diverge on local caps, international rates and payout costs. The right choice depends on your volume and cash-flow needs.
Fee and settlement grid 2026
In Nigeria, a few tenths of a percent become significant once monthly volume clears a few million naira.
| Criterion (2026 order of magnitude) | Paystack | Flutterwave |
|---|---|---|
| Local fee | 1.5 %, capped NGN 2,000 | 1.4 % |
| Settlement | T+1 | T+1 |
| International cards | 3.8 % | 3.8 % |
| KYC / limits | Business verification | Business verification |
| Payout / transfer fee | NGN 10 to 50 | NGN 10 to 50 |
| Rails covered | Cards, transfer, USSD | Cards, transfer, USSD |
What settlement does to your cash flow
T+1 settlement frees the money the next day. On a shop that restocks weekly, that timing feeds directly into replenishment capacity, while the local fee cap shapes profitability on large baskets.
| Monthly volume | Fee at 1.5 % (capped) | Fee at 1.4 % | Annual gap |
|---|---|---|---|
| NGN 2,000,000 | ~NGN 28,000 | NGN 28,000 | small |
| NGN 5,000,000 | ~NGN 60,000 | NGN 70,000 | varies |
| NGN 10,000,000 | ~NGN 110,000 | NGN 140,000 | ~NGN 360,000 |
Mini case study
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Chidi runs an online store in Lagos with NGN 5,000,000 in monthly sales. The NGN 2,000 local cap on Paystack matters most on high-ticket orders, where a percentage fee would cost more. Meanwhile T+1 settlement instead of a slower rail keeps one to two days of cash permanently available, covering a weekly restock without an overdraft.
FAQ
Can aggregator fees be negotiated? Yes, above a certain monthly volume. Public grids (1.4 to 1.5 %) are starting points, not fixed rates.
Which aggregator for international sales? Both charge around 3.8 % on international cards. Check the exact rate applied to non-local transactions, usually higher than domestic.
Does the local fee cap help on big baskets? The NGN 2,000 cap protects margin on high-ticket orders where an uncapped percentage would cost more.
How much is a payout to my account? Between NGN 10 and 50 per transfer in 2026, depending on channel and amount. Batch payouts to limit this cost.
Should I run one or two aggregators? A second aggregator serves as a fallback during outages and lets you arbitrage fees rail by rail.
Let's talk about your project. We connect the aggregator best suited to your volume and negotiate the grid for you. 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.
