The verdict in three sentences
In Nigeria, Paystack wins on developer experience and predictable pricing (1.5% + 100 NGN, waived under 2,500 NGN), making it the safe default for most online stores. Flutterwave is often cheaper on larger tickets thanks to its 1.4% fee capped at 2,000 NGN, and it shines for multi-country and pan-African payouts. The right call depends on your average ticket size and whether you need broad cross-border coverage.
The Nigerian duopoly in numbers
Both gateways cover cards, bank transfer and mobile money. Here are the 2026 orders of magnitude (based on public pricing and merchant practice).
| Criterion | Paystack | Flutterwave |
|---|---|---|
| Local transaction fee | 1.5% + 100 NGN | 1.4% |
| Fee cap per transaction | 2,000 NGN | 2,000 NGN |
| Fee waived under | 2,500 NGN | small tickets |
| Settlement | T+1 | T+1 (instant premium) |
| Transfer/payout fee | 10-50 NGN | 10-45 NGN |
| Dispute support | Structured, 48-72 h | Variable by channel |
A store that accepts only cards mechanically loses the growing share of customers who prefer bank transfer or mobile money. Both gateways support the full mix, so coverage is rarely the differentiator; fees and API robustness are.
Real fees: beyond the headline rate
The merchant rate is only part of the story. Add payout fees and settlement timing.
| Cost item | Paystack | Flutterwave |
|---|---|---|
| Local fee | 1.5% + 100 NGN | 1.4% |
| Fee cap | 2,000 NGN | 2,000 NGN |
| Payout to bank | 10-50 NGN | 10-45 NGN |
| Settlement delay | T+1 | T+1 |
| Indicative cost on 100,000 NGN | ~1,600 NGN (capped) | ~1,400 NGN |
On a monthly turnover of 3,000,000 NGN, the gap between 1.5% and 1.4% is roughly 3,000 NGN per month before caps kick in. On high-ticket sales, Flutterwave's cap advantage grows, while Paystack's fee waiver under 2,500 NGN helps micro-transactions.
Mini case study
Chidi, who runs a hardware store in Lagos, processes 4,000,000 NGN per month with an average ticket of 8,000 NGN.
- Paystack: 1.5% + 100 NGN per transaction, roughly 220 NGN per sale = ~110,000 NGN in fees
- Flutterwave: 1.4% per transaction, roughly 112 NGN per sale = ~56,000 NGN in fees
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On his ticket profile, Flutterwave's cap and flat percentage save him close to 54,000 NGN per month. But he keeps Paystack as a backup gateway, because a single provider outage during a sales peak would cost far more than the fee difference.
FAQ
Which gateway is cheaper in Nigeria in 2026?
It depends on ticket size. Flutterwave's flat 1.4% usually beats Paystack's 1.5% + 100 NGN on mid-to-high tickets, while Paystack's fee waiver under 2,500 NGN helps small transactions. Both cap fees at 2,000 NGN per transaction.
Is the fee really waived under 2,500 NGN on Paystack?
Yes, Paystack waives the additional 100 NGN flat fee on transactions under 2,500 NGN, which matters a lot for micro-payments and high-frequency low-value stores.
How fast is settlement?
Both default to T+1 settlement. Flutterwave offers an instant settlement premium at extra cost, useful for cash-flow-sensitive businesses.
Which has the better developer API?
Paystack is widely regarded as having the cleaner documentation and SDKs, while Flutterwave offers broader multi-country and payout coverage. Many teams start on Paystack and add Flutterwave for cross-border needs.
Can I run both gateways at once?
Yes, and many stores do for redundancy. Routing logic can send small tickets to Paystack and large ones to Flutterwave to minimise fees while protecting uptime.
Let's talk about your project. We integrate Paystack and Flutterwave with signed webhooks and automatic reconciliation for 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.