The verdict in three sentences
In Nigeria in 2026, Paystack charges 1.5 % capped at 2,000 NGN, while Flutterwave sits around 1.4 % with a slightly different structure. The real cost depends on the channel used: card, bank transfer, and USSD do not share the same grid. Routing each amount to the right rail can preserve 1 to 2 margin points over a year.
Fee grid by channel (2026 order of magnitude)
The rates below are 2026 estimates for an active merchant account. Always verify your contract, as grids change.
| Provider | Local card | Transfer | Cap | Settlement |
|---|---|---|---|---|
| Paystack | 1.5 % | 10 NGN | 2,000 NGN | T+1 |
| Flutterwave | 1.4 % | variable | ~2,000 NGN | T+1 / T+2 |
| International card | 3.9 % | n/a | none | T+2 |
| USSD / bank | ~1.0 % | flat fee | varies | T+1 |
On monthly revenue of 5,000,000 NGN collected by card, the gap between Paystack (75,000 NGN before cap) and Flutterwave (70,000 NGN) can represent thousands of NGN per month once caps and mix are factored in.
The profitable switching threshold
Below a certain amount, fixed fees or customer experience matter more than the rate. Above it, every tenth of a point counts.
| Basket amount | Paystack 1.5 % | Flutterwave 1.4 % | Gap |
|---|---|---|---|
| 2,000 NGN | 30 NGN | 28 NGN | 2 NGN |
| 5,000 NGN | 75 NGN | 70 NGN | 5 NGN |
| 20,000 NGN | 300 NGN | 280 NGN | 20 NGN |
| 60,000 NGN | 900 NGN | 840 NGN | 60 NGN |
| 200,000 NGN | 2,000 NGN (cap) | 2,000 NGN (cap) | 0 NGN |
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The switching threshold sits around 5,000 NGN: above it, systematically favouring the cheaper rail becomes meaningful; above the cap (~133,000 NGN for Paystack), both converge.
Mini case study
Chidi runs a cosmetics store in Lagos with 200 orders/month, average basket 18,000 NGN, i.e. 3,600,000 NGN in revenue. Collecting everything via Paystack card (1.5 %), he pays 54,000 NGN/month in fees. By moving 70 % of volume to bank transfer/USSD (~1 %) and keeping cards for customers who insist, his bill drops to about 41,400 NGN/month. Savings: 12,600 NGN/month, 151,200 NGN/year — roughly seven free orders.
FAQ
Is Flutterwave really always cheaper? For pure card collection, its 1.4 % edges Paystack's 1.5 %, but the cap and payout fees can flip the outcome depending on your basket size.
Can I pass fees to the customer? Possible but risky: a visible 1.5 % service fee at checkout raises cart abandonment. It is often better to absorb fees and bake them discreetly into the displayed price.
How long until I receive the money (settlement)? Expect T+1 as an order of magnitude for both, sometimes T+2 for certain channels. This delay affects your cash flow if you restock quickly.
Should I offer both gateways? Yes, to maximise conversion. A well-integrated multi-rail checkout lets the customer choose, and you route reconciliation automatically afterwards.
Let's talk about your project. We integrate Paystack and Flutterwave with automatic reconciliation and amount-based routing. 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.
