The verdict in three sentences
Locally, Flutterwave (~1.4 %) is slightly cheaper than Paystack (~1.5 % + 100, capped at 2,000), but Paystack often wins on webhook reliability and documentation clarity. Both settle at T+1, so settlement is not a differentiator. Our rule: Paystack for a clean SaaS/subscription, Flutterwave for multi-country, multi-method coverage (M-Pesa, MoMo, cards, transfers).
Pricing by use case
The fee cap changes everything on large baskets. At 200,000, Paystack caps at 2,000 (i.e. 1 %), where a pure percentage would cost more.
| Criterion | Paystack | Flutterwave |
|---|---|---|
| Local fee | 1.5 % + 100 | 1.4 % |
| Fee cap / transaction | 2,000 | variable |
| Fee on 30,000 | ~550 | ~420 |
| Fee on 200,000 | 2,000 (cap) | ~2,800 |
| International fee (card) | ~3.8 % | ~3.8 % |
| Settlement | T+1 | T+1 |
| M-Pesa / MoMo support | Partial | Extended |
On small baskets Flutterwave is cheaper; on large baskets the Paystack cap takes the lead. The tipping point sits around 150,000.
Success rates and payment methods
Success rate matters more than 0.1 % of fees. A failed card is a lost sale. Here are the 2026 orders of magnitude.
| Method | Success rate | Average cost | UX time |
|---|---|---|---|
| Local card | 72 % | 1.5 % + 100 | ~15 s |
| Bank transfer / vpay | 89 % | 1.4 % | ~30 s |
| Mobile money (MoMo) | 85 % | 1.5 % | ~35 s |
| M-Pesa (via Flutterwave) | 87 % | 1.5 % | ~12 s |
| USSD | 80 % | 1.5 % | ~45 s |
| Apple/Google Pay (intl) | 90 % | 3.8 % | ~10 s |
Transfer/vpay (89 %) beats card (72 %) by 17 points. In practice, surfacing bank transfer over card raises your collected revenue without changing a single rate.
Mini case study
Aline, founder of an invoicing SaaS in Kigali, bills 500 subscriptions/month at 9,900. With Paystack: fees of (1.5 % + 100) × 500 = ~124,250/month. With Flutterwave: 1.4 % × 4,950,000 = ~69,300/month — but her card success rate is 72 %. By switching the default offer to transfer (89 %), she recovers ~17 % of failed payments, i.e. ~840,000 of saved MRR per year. The payment method matters more than the operator.
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FAQ
Paystack or Flutterwave for recurring subscriptions?
Paystack, for its card-token management and webhook docs. Flutterwave handles recurring too, but Paystack stays more predictable for a SaaS.
Which one to sell internationally?
Both charge ~3.8 % on international cards. Flutterwave has wider country coverage; Paystack is simpler if your target is West Africa.
Is T+1 settlement guaranteed?
In practice yes for both, excluding weekends and holidays. A first payout can take longer while merchant KYC is verified.
Why is card success so low?
Around 72 % due to issuer declines, failed 3-D Secure and low balances. That is why we surface transfer and mobile money first.
Can I use both in parallel?
Yes, via a payment abstraction layer. We route by method and country to maximise success and minimise fees.
Let's talk about your project. We wire Paystack, Flutterwave and mobile money behind one interface, with smart routing and 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.
