The verdict in three sentences
Between Paystack (1.5 % + 100 NGN) and Flutterwave (1.4 % local), the gap looks tiny but on 10 M NGN of monthly revenue it can mean over 100,000 NGN a year in difference. Caps matter as much as the rate: Paystack waives the 100 NGN fixed fee under 2,500 NGN and caps total fees at 2,000 NGN per transaction, which flips the math on large tickets. The right choice is made on true total cost — rate + fixed fee + settlement timing — not the headline percentage.
What you actually pay
The merchant percentage is only the visible part. In Lagos you must add the per-transaction fixed fee, any payout fee to your bank, and the hidden cost of the settlement delay that ties up your cash. A provider at 1.4 % settling at T+2 can cost you more than one at 1.5 % settling at T+1 if your cash flow is tight.
Fee comparison Nigeria (2026 order of magnitude)
| Provider | Local rate | Fixed fee | Fee cap | Settlement |
|---|---|---|---|---|
| Paystack | 1.5 % | +100 NGN (waived <2,500) | 2,000 NGN | T+1 |
| Flutterwave | 1.4 % | none local | ~2,000 NGN | T+1 |
| Bank card intl | 3.9 % + 100 NGN | +100 NGN | none | T+1 to T+2 |
| Bank transfer | flat ~10-50 NGN | flat | — | Near real time |
Key point: on small tickets Paystack's waived fixed fee wins, while on mid tickets Flutterwave's flat 1.4 % often edges ahead. The cap at 2,000 NGN protects you on very large payments.
True cost on 10 M NGN monthly revenue
| Provider | Applied rate | Est. monthly fees | Over 12 months |
|---|---|---|---|
| Paystack (avg ticket 5,000) | ~1.5 % + fee | ~155,000 NGN | 1,860,000 NGN |
| Flutterwave | 1.4 % | 140,000 NGN | 1,680,000 NGN |
| Negotiated volume rate | 1.2 % | 120,000 NGN | 1,440,000 NGN |
| Annual spread | — | ~15,000 NGN/mo | ~180,000 NGN |
Over a year, negotiating 0.3 of a point is worth roughly 180,000 NGN — real money earned without selling a single extra unit.
And the Francophone benchmark: MTN MoMo vs Moov Money
For comparison with the neighbouring UEMOA market: MTN MoMo in Benin and Togo runs around 1.5 %, Moov Money around 1.2 to 1.5 %, both usually capped at 500,000 FCFA per transaction and 2,000,000 FCFA daily, settling at T+1. The logic is identical: above a certain ticket, the fee cap decides which provider wins.
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Chidi, who runs a hardware store in Lagos, collects 10 M NGN a month, 70 % via card and transfer links. He paid Paystack an effective 1.55 %, about 155,000 NGN/month. By consolidating volume and moving core traffic to Flutterwave at 1.4 %, he dropped to 140,000 NGN/month. Saving: 15,000 NGN/month, or 180,000 NGN/year. He kept Paystack as a backup channel so a downtime never costs him a sale.
FAQ
Which provider is cheapest in Nigeria in 2026?
As an order of magnitude, Flutterwave at 1.4 % often beats Paystack's 1.5 % + 100 NGN on mid tickets, but Paystack wins on small ones thanks to the waived fee under 2,500 NGN. Above 10 M NGN monthly, negotiate a custom rate.
What is Paystack's fee cap?
Paystack caps total fees at 2,000 NGN per transaction. On a 500,000 NGN payment that means an effective rate far below 1.5 %, which is why large-ticket merchants favour it.
Does slower settlement really cost more?
Yes, indirectly. Moving from T+1 to T+2 ties up one extra day of revenue; on 10 M NGN monthly that is roughly 330,000 NGN permanently locked in the pipeline.
What do MTN MoMo and Moov Money charge in West Africa?
In Benin and Togo, MTN MoMo runs around 1.5 % and Moov Money 1.2 to 1.5 %, both capped near 500,000 FCFA per transaction and settling at T+1.
Should I use one provider or several?
Always keep two providers live. The second is your backup during downtime and your leverage when negotiating fees.
Let's talk about your project. We integrate Paystack and Flutterwave on your store and optimise your settlement fees. 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.