The verdict in three sentences
For a merchant in Lagos, both Paystack and Flutterwave cover cards, bank transfer and mobile money on one integration, so the decision comes down to rate, cap and payout speed. Paystack typically charges around 1.5% on local transactions with a fee cap, while Flutterwave sits around 1.4% plus a small fixed fee. On high-value orders the cap matters more than the headline rate — so your average order value decides the winner.
Paystack vs Flutterwave fees compared
2026 order of magnitude figures for a Nigerian merchant; rates are negotiable at scale.
| Criterion | Paystack | Flutterwave |
|---|---|---|
| Local card rate | ~1.5% | ~1.4% + fixed |
| Local fee cap | ~NGN 2,000 | ~NGN 2,000 |
| International card rate | ~3.9% + fixed | ~3.8% + fixed |
| Fixed fee per transaction | Waived under threshold | ~NGN 50+ |
| Payout (settlement) | T+1 | T+1 |
| Coverage | Cards, transfer, USSD, MoMo | Cards, transfer, USSD, MoMo, multi-country |
| Reconciliation | 1 dashboard | 1 dashboard |
What each option really costs
On a volume of NGN 20m/month, the blended rate and the cap interact — a low average order value pays more in percentage terms.
| Scenario | Avg order value | Effective cost (Paystack) | Effective cost (Flutterwave) |
|---|---|---|---|
| Small tickets | NGN 3,000 | ~1.5% | ~1.6% |
| Medium tickets | NGN 20,000 | ~1.5% (near cap) | ~1.5% |
| High tickets | NGN 150,000 | ~1.3% (cap bites) | ~1.4% |
| Blended (mixed) | — | ~NGN 290,000/mo | ~NGN 300,000/mo |
When average order value is high, the cap on local fees saves more than a 0.1-point rate difference — favour the provider with the tighter cap.
Mini case study
Chidi runs an online electronics store in Lagos doing NGN 30m/month with a NGN 45,000 average order. Above the fee cap, Paystack's local cost lands near 1.3% effective, about NGN 390,000/month. Flutterwave, at ~1.4% plus fixed, lands near NGN 420,000/month for the same mix. Chidi keeps Paystack as the primary gateway for local cards, but routes international diaspora orders through Flutterwave for its multi-country payout — saving roughly NGN 360,000 per year overall.
FAQ
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Is Paystack always cheaper than Flutterwave?
Not always. On low-value tickets the difference is negligible; on high-value orders the fee cap decides. Compare effective cost at your real average order value, not the headline rate.
Which one has faster payouts?
Both typically settle at T+1 for local transactions. Timing differences are usually about your bank and KYC status rather than the provider itself.
Do I need both providers?
Many merchants run a primary gateway with the other as fallback. This lifts success rate and lets you route international orders to whichever provider gives cheaper cross-border payouts.
How much does the fee cap actually save me?
On a NGN 150,000 order, a NGN 2,000 cap means an effective rate near 1.3% instead of 1.5% — roughly NGN 300 saved per order, which adds up fast on high-ticket catalogues.
How long to go live?
With either provider you can be in production in about 5 to 10 days for a standard checkout, since both cover cards, transfer and mobile money on one integration.
Let's talk about your project. We wire Paystack and Flutterwave with smart routing so each order takes the cheapest path. 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.