The verdict in three sentences
For a Lagos merchant in 2026, Paystack charges roughly 1.5 % + NGN 100 per local card transaction, capped at NGN 2,000, with T+1 settlement. Flutterwave sits near 1.4 % local with broader multi-country coverage and T+1 to T+2 settlement. The right pick depends on your average order value, monthly volume and how much you value payout speed versus pan-African reach.
Merchant fees compared
The rates below are a 2026 order of magnitude for a standard Nigerian merchant account. Always confirm your contract grid, since both processors negotiate above a certain volume.
| Criterion | Paystack | Flutterwave |
|---|---|---|
| Local card fee | 1.5 % + NGN 100 | ~1.4 % |
| Fee cap per transaction | NGN 2,000 | NGN 2,000 |
| International cards | 3.9 % + NGN 100 | ~3.8 % |
| Settlement | T+1 | T+1 to T+2 |
| Transfers/payouts | NGN 10-50 per transfer | NGN 10-45 per transfer |
| Countries covered | ~4 | 30+ |
| Developer API | Excellent | Excellent |
On a turnover of NGN 20,000,000/month, 1.5 % is NGN 300,000 in fees with Paystack (before the NGN 2,000 cap smooths large tickets), against roughly NGN 280,000 with Flutterwave at 1.4 %. The gap widens with international card share.
How settlement affects cash flow
Settlement timing changes your working-capital need. With T+1, Monday's sales land Tuesday; a slower T+2 leg pushes it to Wednesday, which matters at scale.
| Monthly volume | Paystack (1.5 %) | Flutterwave (1.4 %) | Gap |
|---|---|---|---|
| NGN 5,000,000 | NGN 75,000 | NGN 70,000 | NGN 5,000 |
| NGN 20,000,000 | NGN 300,000 | NGN 280,000 | NGN 20,000 |
| NGN 50,000,000 | NGN 750,000 | NGN 700,000 | NGN 50,000 |
| NGN 100,000,000 | NGN 1,500,000 | NGN 1,400,000 | NGN 100,000 |
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Mini case study
Chidi, who runs a cosmetics shop in Lekki, collects NGN 28,000,000/month, of which 70 % is card and transfer online, i.e. NGN 19,600,000. At 1.5 % via Paystack he pays about NGN 294,000 in fees; at 1.4 % via Flutterwave he would pay roughly NGN 274,400. Switching his primary rail saves about NGN 19,600/month, or NGN 235,200/year — enough to fund a local ad campaign. He keeps the second processor as fallback for failed transactions.
FAQ
Is the fee really capped? Yes, both Paystack and Flutterwave cap the local card fee around NGN 2,000 per transaction in 2026, which makes them very cheap on high-ticket sales.
Can I offer both processors on my site? Absolutely, and it is recommended. A multi-processor checkout can raise successful-payment rate by 10-20 % depending on your customers and bank uptime.
Which one is better for pan-African sales? Flutterwave covers 30+ countries and more currencies, so it suits cross-border stores; Paystack shines on a clean Nigeria-first developer experience.
Does T+1 vs T+2 settlement matter? For small volumes the impact is minor; above NGN 50,000,000/month, one saved cash-flow day eases restocking and supplier payments.
Are the rates negotiable? Yes, above a certain monthly volume both offer negotiated grids, usually through a formalized registered business account.
Let's talk about your project. We integrate Paystack and Flutterwave as a unified checkout with tested webhooks and automatic reconciliation. 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.
