Comparison · Updated September 22, 2026
Paystack vs Flutterwave
Paystack
B
Paystack is a payment aggregator for businesses in Africa, founded in Lagos in 2015 by Shola Akinlade and Ezra Olubi, put through Y Combinator in early 2016 and bought by Stripe in October 2020 in a deal widely reported at over $200 million. Its own help desk says the service is available to businesses registered in Nigeria, Ghana, South Africa and Kenya, with Côte d'Ivoire — which has a published rate card — described as a private beta alongside Egypt. Paystack's site says more than 200,000 businesses use it; its chief executive put the figure at 300,000 in January 2026. A merchant signs up with Paystack rather than applying for a merchant account of their own, which is the reason onboarding is quick and the reason Paystack, not an acquiring bank, decides when to hold funds. Pricing is published in full for every market, which is unusual in this segment: Nigeria is 1.5% + ₦100 on local transactions with the ₦100 waived under ₦2,500 and the whole fee capped at ₦2,000, 3.9% + ₦100 on international cards; South Africa is 2.9% + R1 excluding VAT locally and 3.1% + R1 internationally; Ghana is a flat 1.95%; Kenya is 1.5% on M-PESA and 2.9% on local cards; Côte d'Ivoire is 1.95% on mobile money and 3.2% on local cards. Settlement is next working day in Nigeria and Ghana and two working days in South Africa, with no setup or monthly charge. In January 2026 the business reorganised under a holding company, The Stack Group, whose founding shareholders are Stripe, Paystack's employees and Akinlade, alongside the Zap transfer app and a microfinance bank. The reservations are the ones that come with any aggregator: the Central Bank of Nigeria fined Paystack ₦250 million in April 2025 over Zap operating outside its licence, and the public review record is dominated by accounts of balances held during compliance review.
Flutterwave
B-
Flutterwave is the payment aggregator that most international businesses use to collect from customers across Africa. Founded in 2016 by Olugbenga Agboola and Iyinoluwa Aboyeji, headquartered in San Francisco and Lagos, licensed in 34 African countries and holding Nigeria's switching-and-processing licence since 2022 and a microfinance-bank licence since April 2026, it says it has processed more than a billion transactions worth over $50 billion and was valued at $3.2 billion in June 2026 when Ripple joined its Series E. Pricing is published per country and is simple — 2% on local cards in Nigeria, 2.9% on mobile money in Kenya, 4.8% on any international card since November 2024 — with next-day local settlement and no monthly fee. The B-minus reflects a record a merchant should read before relying on it: Kenya froze about $52 million of its funds in 2022 on money-laundering suspicions (the case was withdrawn in 2023 and the money returned), it still has no Kenyan licence of its own, and a 2023 technical glitch let POS merchants move about ₦19 billion out of the platform.
VS
Overview
Paystack and Flutterwave are the two payment gateways most African businesses shortlist first, and in Nigeria, where both started, they compete head to head. Paystack, a Stripe company since 2020 and graded B on Payment Review, charges Nigerian merchants 1.5% + ₦100 on local payments, waives the ₦100 on transactions under ₦2,500 and caps the fee at ₦2,000. Flutterwave, graded B-, has charged a flat 2% with no published cap on local naira payments since 11 April 2025, plus 7.5% VAT, and raised its international card fee to 4.8% in November 2024 against Paystack's 3.9% + ₦100. Both settle local payments the next working day and charge the same ₦10 to ₦50 per transfer. Paystack is cheaper on small payments under ₦2,500 and on anything above about ₦15,000, where Flutterwave's uncapped 2% overtakes it; Flutterwave publishes pricing for 12 African markets and carries the better Trustpilot score.
Key Takeaways
- ✓Paystack wins on large Nigerian payments: its 1.5% + ₦100 fee is capped at ₦2,000, while Flutterwave's 2% plus VAT has no cap. Flutterwave is cheaper on mid-sized payments of roughly ₦2,500 to ₦15,000.
- ✓Paystack wins on international cards in Nigeria: 3.9% + ₦100 against Flutterwave's 4.8%, and Flutterwave settles international payments on T+5 against Paystack's next-day naira settlement.
- ✓Flutterwave wins on reach: it publishes merchant pricing for 12 African markets, where Paystack serves Nigeria, Ghana, Kenya, South Africa and Côte d'Ivoire.
- ✓Flutterwave wins on reviews: a 4.2 TrustScore from about 960 Trustpilot reviews against Paystack's 1.5 from about 250, although a third of Flutterwave's are one-star.
- ✓They tie on local settlement and Nigerian transfer fees: next working day, and ₦10, ₦25 or ₦50 per transfer depending on the amount.
Paystack
Paystack is the cheaper and lower-risk choice for a business that sells mainly in Nigeria, Ghana, Kenya or South Africa, especially one with large tickets that benefit from the ₦2,000 fee cap.
Flutterwave
Flutterwave is for a business that needs to collect in African markets Paystack does not serve, such as Cameroon, Senegal, Tanzania, Uganda, Rwanda or Zambia, and will accept higher Nigerian fees for that reach.
Overall Winner
🏆 Winner
Paystack
Bexpert grade
Runner-up
Flutterwave
Why?
For a business collecting mainly in Nigeria, Paystack is usually the cheaper gateway. Its fee is lower on payments under ₦2,500 and on anything above about ₦15,000, and it stops at ₦2,000, so a ₦500,000 payment costs ₦2,000 at Paystack and ₦10,000 plus VAT at Flutterwave. Flutterwave's flat 2% is cheaper only on mid-sized payments of roughly ₦2,500 to ₦15,000, where Paystack's ₦100 flat fee bites. Paystack also charges less on international cards and settles them faster, and holds the higher grade on Payment Review, though its Trustpilot score is poor. Flutterwave is the right choice when you need a market Paystack does not serve, and it has the better customer reviews.
Feature by feature
Detailed Comparison
Filter Options
Nigerian pricing
| Feature | Paystack | Flutterwave |
|---|---|---|
| Local payments (cards, transfer, USSD) | 1.5% + ₦100, capped at ₦2,000 | 2% + 7.5% VAT, no cap published |
| Paystack waives the ₦100 on transactions under ₦2,500. Flutterwave's fee rose from 1.4% capped at ₦2,000 to a flat 2% on 11 April 2025. Between ₦2,500 and about ₦15,000, Paystack's ₦100 flat fee makes it the dearer of the two; above that, and below ₦2,500, Paystack is cheaper. Paystack's Nigeria pricing page does not say whether VAT is added to its fee, which would move the crossover to ₦20,000. | ||
| International cards | 3.9% + ₦100 Winner | 4.8% |
| Flutterwave raised international card and Apple Pay/Google Pay fees from 3.8% to 4.8% on 11 November 2024. Paystack settles international payments in naira by default. | ||
| Bank transfer to a virtual account | 1%, capped at ₦300 Winner | 2% (all local methods) |
| Paystack prices dedicated virtual accounts separately; Flutterwave's 2% covers cards, bank transfer, USSD, Pay with Bank and NQR alike. | ||
| Setup and monthly fees | None | None |
Local payments (cards, transfer, USSD)
Paystack
1.5% + ₦100, capped at ₦2,000
Flutterwave
2% + 7.5% VAT, no cap published
Paystack waives the ₦100 on transactions under ₦2,500. Flutterwave's fee rose from 1.4% capped at ₦2,000 to a flat 2% on 11 April 2025. Between ₦2,500 and about ₦15,000, Paystack's ₦100 flat fee makes it the dearer of the two; above that, and below ₦2,500, Paystack is cheaper. Paystack's Nigeria pricing page does not say whether VAT is added to its fee, which would move the crossover to ₦20,000.
International cards
Paystack
3.9% + ₦100
Winner
Flutterwave
4.8%
Flutterwave raised international card and Apple Pay/Google Pay fees from 3.8% to 4.8% on 11 November 2024. Paystack settles international payments in naira by default.
Bank transfer to a virtual account
Paystack
1%, capped at ₦300
Winner
Flutterwave
2% (all local methods)
Paystack prices dedicated virtual accounts separately; Flutterwave's 2% covers cards, bank transfer, USSD, Pay with Bank and NQR alike.
Setup and monthly fees
Paystack
None
Flutterwave
None
Best For Your Business
Recommendations based on your business type
Nigerian e-commerce store
Both. It depends on the basket. Flutterwave's 2% is cheaper on orders of roughly ₦2,500 to ₦15,000; Paystack is cheaper below and above that range, and far cheaper on large orders because of its ₦2,000 cap. Both settle the next working day.
High-ticket Nigerian seller (electronics, school fees, real estate)
Recommended
Paystack
Paystack's fee stops at ₦2,000 however large the payment; Flutterwave's 2% keeps climbing, reaching ₦20,000 plus VAT on a ₦1m payment.
Business collecting across Francophone and East Africa
Recommended
Flutterwave
Flutterwave publishes local pricing in Cameroon, Senegal, Tanzania, Uganda, Rwanda, Malawi and Zambia, markets Paystack does not serve.
Nigerian business selling to foreign cardholders
Recommended
Paystack
Paystack charges 3.9% + ₦100 and settles next day in naira; Flutterwave charges 4.8%, settles on T+5 and charges $38 per international chargeback.
Kenyan business taking M-PESA
Recommended
Paystack
Paystack charges 1.5% on M-PESA against Flutterwave's 2.9% on mobile money, though Paystack settles in Kenya on T+2.
Paystack: Best for 3 use cases
Flutterwave: Best for 1 use case
Frequently Asked Questions
Common questions about this comparison
Usually Paystack. It charges 1.5% + ₦100 on local payments, waives the ₦100 under ₦2,500 and caps the fee at ₦2,000. Flutterwave has charged a flat 2% with no published cap since 11 April 2025, plus 7.5% VAT. That makes Flutterwave cheaper on payments of roughly ₦2,500 to ₦15,000, and Paystack cheaper on smaller payments and much cheaper on large ones.
No. Flutterwave's old local rate was 1.4% capped at ₦2,000. On 11 April 2025 it moved to 2% on local naira payments, and its current Nigeria pricing page shows no cap.
Yes. Stripe announced its acquisition of Paystack in October 2020, and Paystack still describes itself as a Stripe company. In January 2026 Paystack announced The Stack Group, a new parent structure with Stripe among its founding shareholders, pending regulatory approval.
Both settle local Nigerian payments the next working day. Flutterwave settles international payments on T+5 business days, up to T+7 around weekends and holidays. Paystack settles in two working days in South Africa and on T+2 in Kenya.
Flutterwave, on Trustpilot: a 4.2 TrustScore from 959 reviews against Paystack's 1.5 from 246, as of September 2026. Paystack holds the higher grade on Payment Review, B against Flutterwave's B-, mainly on pricing.
Paystack says it charges no penalty when you accept a chargeback. Flutterwave's help centre lists a $38 dispute fee on international chargebacks.