The verdict in three sentences
In Lagos, Paystack charges 1.5 % + NGN 100 capped at NGN 2,000, while Flutterwave runs 1.4 % local with channel-dependent add-ons. For small baskets the difference is marginal; for repeated mid-to-high baskets, the fee cap and payout speed decide the winner. The right pick depends on your average basket and monthly volume, not brand preference.
The fee-grid duel
| Channel | Variable fee | Fixed / cap | Settlement |
|---|---|---|---|
| Paystack (Nigeria) | 1.5 % + NGN 100 | capped NGN 2,000 | Instant to T+1 |
| Flutterwave (local) | 1.4 % | channel-dependent | T+1 |
| Wave CI | 1 % flat | none | T+1 |
| MTN MoMo CI | 1 % | NGN-equiv fixed above threshold | T+1 |
A free-transfer band also exists: in Nigeria, Paystack and Flutterwave often let a tranche up to about NGN 10,000 pass without an extra fixed fee depending on the plan.
Real cost by average basket
| Average basket | Paystack (1.5 % + 100, cap 2,000) | Flutterwave (1.4 %) | Gap per tx |
|---|---|---|---|
| NGN 10,000 | NGN 250 | NGN 140 | NGN 110 |
| NGN 30,000 | NGN 550 | NGN 420 | NGN 130 |
| NGN 50,000 | NGN 850 | NGN 700 | NGN 150 |
| NGN 150,000 | NGN 2,000 (capped) | NGN 2,100 | Paystack cheaper |
Note the crossover: above roughly NGN 130,000 the Paystack cap of NGN 2,000 makes it cheaper than uncapped 1.4 %.
Mini case study
Chidi, who runs an online shop in Lagos, processes 1,200 orders/month at an average basket of NGN 40,000. With Flutterwave at 1.4 %, he pays about NGN 672,000/month. With Paystack at 1.5 % + NGN 100, he pays about NGN 840,000/month below the cap. By routing high baskets (above NGN 130,000) to Paystack for the cap and the rest to Flutterwave, he trims roughly NGN 90,000/month.
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FAQ
Is Flutterwave always cheaper?
No. Below the crossover (~NGN 130,000) Flutterwave's uncapped 1.4 % wins, but above it Paystack's NGN 2,000 cap takes the lead. Route by basket size.
Should I offer a single channel?
No. Offer both to avoid losing customers, but steer high-value baskets to the channel with the fee cap.
What about payout speed?
Paystack can offer instant payout for a small surcharge; Flutterwave typically settles T+1. Instant payout is worth it only if cash-flow timing is tight.
Is the fixed fee negotiable?
Above a significant volume, yes. Document your count of transactions above the fixed-fee threshold to argue for a discount.
Let's talk about your project. We wire Paystack and Flutterwave at checkout and route each payment to the cheapest channel. 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.
