The verdict in three sentences
On the same revenue, Paystack and Flutterwave sit within a few tenths of a percent of each other for local card and transfer collection, so the raw rate is rarely the deciding factor. The real arbitrage is your mix of local vs international payments and your monthly volume, because international cards jump to 3.8 %. Below NGN 5,000,000 in volume the choice comes down to features; above it, the fee spread turns into a line item worth optimising.
The 2026 merchant fee grids
The figures below are a 2026 order of magnitude for merchant collection in Lagos; exact rates depend on your contract and negotiated caps.
| Item | Paystack | Flutterwave |
|---|---|---|
| Local transaction fee | ~1.5 % | ~1.4 % |
| Fee cap (local) | NGN 2,000 | NGN 2,000 |
| International cards | ~3.9 % | ~3.8 % |
| Bank transfer / payout | ~NGN 50 / op | ~NGN 45 / op |
| Settlement delay | T+1 | T+1 |
On an average basket of NGN 12,000, Paystack takes about NGN 180 and Flutterwave about NGN 168 on local rails. The NGN 12 per sale gap looks tiny, but it multiplies fast.
Real cost by transaction volume
| Monthly volume | Sales | Revenue (NGN 12,000) | Paystack (~1.5 %) | Flutterwave (~1.4 %) | Monthly gap |
|---|---|---|---|---|---|
| Small | 100 | 1,200,000 | 18,000 | 16,800 | 1,200 |
| Medium | 500 | 6,000,000 | 90,000 | 84,000 | 6,000 |
| Active | 720 | 8,640,000 | 129,600 | 120,960 | 8,640 |
| Large | 2,000 | 24,000,000 | 360,000 | 336,000 | 24,000 |
At 24 sales a day (720 a month) the annual gap tops NGN 100,000 on local rails alone. The tipping point sits around NGN 5,000,000 in volume, where the NGN 6,000/month spread justifies negotiating a rate or routing to the cheaper processor.
Mini case study
Chidi, who runs a fashion store in Lagos, collects 18 sales a day at NGN 12,000, about NGN 6,480,000 monthly. On 100 % Paystack with a mix of 20 % international cards, he pays ~1.5 % on local (77,760 NGN) plus ~3.9 % on the international share (50,544 NGN), roughly NGN 128,000/month. By steering local customers to bank transfer (a lower flat fee) and keeping international only where needed, his bill falls to about NGN 95,000/month. Saving: NGN 33,000 a month, over NGN 390,000 a year.
FAQ
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Is Paystack really cheaper than Flutterwave?
Not always: local rates are within 0.1 % of each other (1.5 % vs 1.4 %). The difference shows up on caps, international cards and payout fees, not the headline rate.
Why do international cards cost so much more?
Because cross-border interchange pushes fees to about 3.8 %–3.9 %, more than double the local rate. A merchant with many international buyers should isolate and price that channel separately.
At what volume does the gap matter?
From NGN 5,000,000 in monthly volume the spread reaches about NGN 6,000/month, or NGN 72,000 a year. Below that, choose on features and reliability.
Can I accept both and route intelligently?
Yes, and it is the smartest play. A well-built store offers both at checkout and tracks net received per channel so you favour the cheaper one without losing sales.
Does the fee cap actually help large baskets?
Yes: the NGN 2,000 cap means any sale above ~NGN 133,000 pays a flat fee, so high-ticket sellers effectively pay well under 1.5 %.
Let's talk about your project. We map your real Paystack and Flutterwave cost, then wire the right routing into your store. 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.
