If you sell online in Nigeria, you will almost certainly take payments through Paystack or Flutterwave. Both are mature, both are licensed, and both work. The differences are in the fees, the shape of the products around them, and how they handle money from outside Nigeria.
We integrate both for clients, so we don't have a stake in which one you pick. This guide sets out what each charges, what that means at different order sizes, and how to decide.
The short answer
- Mostly local orders above ₦20,000? Paystack usually costs less, because of its ₦2,000 cap on local card fees.
- Many small local orders between ₦2,500 and ₦20,000? Flutterwave's flat percentage usually comes out slightly cheaper.
- Selling across Africa, especially with Mobile Money? Flutterwave covers more countries and currencies; Paystack covers fewer, but the ones it covers are well supported.
- Not sure? Pick the one whose dashboard and support you prefer. You can add the other later; a good integration makes that a small job.
Fees side by side
These are the standard published rates for Nigerian businesses as at October 2026. Both companies offer custom pricing to high-volume merchants, and Flutterwave restructured its pricing in 2025, so confirm the rates in your own merchant agreement before you rely on them.
| Paystack | Flutterwave | |
|---|---|---|
| Local cards, transfers and USSD | 1.5% + ₦100 | 2.0% |
| The ₦100 fixed fee | Waived on transactions under ₦2,500 | No fixed fee |
| Cap on local fees | ₦2,000 per transaction | Check your agreement |
| International cards | 3.9% + ₦100 | 4.8% |
What that means at real order sizes
Percentages are hard to compare in your head, so here are four local card payments worked through at the standard rates.
| Order value | Paystack fee | Flutterwave fee |
|---|---|---|
| ₦2,000 | ₦30 | ₦40 |
| ₦10,000 | ₦250 | ₦200 |
| ₦50,000 | ₦850 | ₦1,000 |
| ₦200,000 | ₦2,000 (capped) | ₦4,000 |
For a business selling furniture, electronics, school fees or property deposits, that cap matters a great deal. For a business selling ₦5,000 food orders, the difference is a few naira per order and other factors count for more.
Payment methods your customers can use
Nigerian customers don't all pay the same way, and a checkout that only takes cards loses sales.
Both Paystack and Flutterwave accept Visa, Mastercard and Verve cards, bank transfers and USSD, which matters for customers who don't trust card payments online or whose cards fail. Both offer payment links you can send on WhatsApp, which is useful when a sale starts in a chat rather than on your website.
Beyond Nigeria, Flutterwave supports a wider list of African countries and currencies, including Mobile Money in markets such as Ghana and Kenya. Paystack operates in fewer countries, including Ghana, Kenya and South Africa, and also supports Mobile Money in Ghana.
Taking money from customers abroad
If you sell to the diaspora or to clients overseas, international card fees matter: 3.9% + ₦100 on Paystack against 4.8% on Flutterwave at standard rates.
Two practical points apply to both. First, international cards are more likely to be declined by the customer's own bank on a first payment to a Nigerian merchant, so give customers a second option such as a bank transfer. Second, if most of your revenue is in dollars, ask each provider how and when they settle foreign currency, because that affects your cash flow more than a percentage point of fees.
Ownership and stability
Paystack was founded in Lagos in 2015 and acquired by Stripe in 2020. Flutterwave was founded in 2016 and has grown into one of Africa's largest payment companies. Both are licensed in Nigeria and both have years of track record with Nigerian merchants. Neither is a risky choice.
Recurring payments, splits and payment links
Fees are only part of the picture. Depending on how you sell, these features may decide it for you.
Subscriptions. If you charge monthly, such as a gym, a school, a software product or a care plan, both providers let you create plans and charge saved cards on a schedule. Customers whose cards fail need a reminder and a simple way to update their details, so plan that into the build.
Split payments. Marketplaces, property managers and franchises often need one payment divided between several accounts. Both Paystack and Flutterwave support subaccounts that split a payment automatically, which saves a lot of manual transfers at month end.
Payment links and invoices. For businesses that sell through WhatsApp or Instagram, a payment link can be all you need on day one. Both providers let you create links and simple invoices from the dashboard without a website. When volume grows, a proper checkout on your own site gives a better experience and keeps order records in one place.
Getting your account approved
Both providers let you sign up and test straight away in test mode. To take real money, you complete a compliance profile with your business details, ID and the bank account for payouts. Registered businesses also provide CAC documents. Start this early: a website that is ready to launch but waiting on payment approval is a common and avoidable delay.
What matters more than the fee
For most small businesses, the fee difference between the two is smaller than the money lost to a bad checkout. Before you obsess over 0.5%, check these:
- Does the checkout work on a cheap Android phone on a slow connection? That is how many of your customers will pay.
- Do failed payments get followed up? A customer whose card was declined is a warm lead. Your site should show a clear retry and an alternative, such as bank transfer.
- Are orders confirmed automatically? The integration should listen for the provider's confirmation (a webhook), so an order is marked paid even if the customer closes the browser before returning to your site.
- Can your team see what was paid? Payments should match orders in your admin panel, not just in the provider's dashboard.
These are integration questions, not provider questions. A careful integration on either platform beats a careless one on the cheaper platform.
What we'd suggest for common businesses
- Online shop with mid to high order values (fashion, electronics, furniture): Paystack, for the fee cap.
- Food, small retail and low-value orders: either; Flutterwave is marginally cheaper per order below ₦20,000.
- Schools collecting fees in instalments: either, with payment plans and split settlement if several accounts are involved.
- Selling to customers in Ghana, Kenya or elsewhere in Africa: Flutterwave first, for its wider country and Mobile Money coverage.
- Mostly diaspora and international customers: compare international card rates and foreign currency settlement with both before you choose.
How we set it up
We add Paystack or Flutterwave to new and existing websites, with a payment gateway integration starting from ₦75,000. That covers checkout, webhook confirmation and test transactions before go-live. Online stores with catalogue, cart and checkout start from ₦600,000, and the payment integration is included.
If you're planning a store or a booking site, see our web development service, read how much a website costs in Nigeria, or tell us what you sell and we'll recommend one. As with everything we build, you see it working, including a real test payment, before you pay.