For businesses serving Nigerian customers, Paystack and Flutterwave are two major options. Stripe is another important processor for businesses operating in supported international markets. Their pricing models and settlement arrangements are different, so comparing them on transaction fees alone can lead to the wrong decision.

Here is how the three compare on fees, setup, payment options, and settlement speed.

Paystack

Paystack is particularly relevant to Nigerian businesses because its pricing is published specifically for the Nigerian market.

For local Nigerian transactions, Paystack charges 1.5% + ₦100, with the ₦100 fee waived for transactions below ₦2,500. Local transaction fees are capped at ₦2,000 per transaction. For international transactions, the published rate is 3.9% + ₦100 for Mastercard, Visa, and Verve cards.

There is no integration fee or maintenance fee listed for the standard payment service. Paystack also states that businesses can access volume discounts when processing larger transaction volumes.

Settlement is another major consideration. Standard Nigerian settlements are processed automatically on the next working day, known as T+1. A payment received on Monday, for example, is normally settled on Tuesday.

Paystack also offers a Payout on Demand feature to eligible Nigerian businesses. According to its current documentation, eligible businesses can withdraw up to 70% of processed transactions before the normal payout run, with a 1% charge on the withdrawal amount.

For a new Nigerian online business, Paystack's strongest advantage is straightforward pricing combined with a predictable next-working-day settlement cycle.

Flutterwave

Flutterwave uses a different pricing structure for Nigerian merchants.

Its current Nigerian pricing page lists local transactions at 2% per transaction, made up of a 1.4% transaction fee and a 0.6% platform fee. International transactions are listed at 4.8% per transaction. Flutterwave also states that transaction fees are subject to 7.5% VAT.

Flutterwave's local settlement schedule for Nigeria is T+1, meaning local payments are normally settled on the next business day. International payments use a longer T+5 business-day settlement schedule.

The platform supports several payment methods, including cards, bank accounts, USSD, bank transfers, POS and Visa QR. Flutterwave also states that it supports payments in more than 30 currencies.

Another consideration is the ability to pass transaction charges to customers. Flutterwave allows merchants to configure their accounts so that customers bear the transaction charge instead of the business absorbing it.

This can matter for businesses with tight margins, although merchants should consider how an additional checkout charge could affect customer conversion.

Flutterwave therefore makes a strong case for businesses that need a broad selection of payment methods and international payment capabilities, while its 2% local Nigerian transaction fee is higher than Paystack's standard local rate.

Stripe

Stripe operates on a different scale and is particularly relevant to businesses targeting international customers in supported markets.

Stripe's standard pricing page currently lists 2.9% + $0.30 per successful domestic card transaction. Stripe also lists an additional 1.5% for international cards and another 1% when currency conversion is required. There are no setup fees or monthly fees under its standard pricing model.

Stripe's payment infrastructure supports more than 100 payment methods, more than 135 currencies, and businesses in 195 countries, according to its pricing information. Availability of individual products and payment methods depends on the business's location.

Stripe also offers instant payouts in eligible markets. Its published pricing lists instant payouts at 1.5% of the payout volume, with a minimum fee of $0.50. Standard payouts remain available without that instant-payout charge, subject to the applicable payout schedule.

This makes Stripe particularly relevant to businesses that operate internationally or require sophisticated payment infrastructure. However, businesses should first verify that the required Stripe account, payment methods and payout arrangements are available in their country.

Fee Comparison

For a Nigerian business primarily collecting naira payments, the published rates make the differences relatively clear.

Payment Gateway Local Transaction Fee International Transaction Fee Standard Local Settlement

Paystack 1.5% + ₦100, capped at ₦2,000 3.9% + ₦100 Next working day

Flutterwave 2% 4.8% Next business day

Stripe 2.9% + $0.30 for domestic cards in its standard US pricing +1.5% for international cards Depends on market

Paystack and Flutterwave figures above are specifically based on their published Nigerian pricing. Stripe's standard rate is market-specific, so it should not be treated as a universal rate for every Stripe merchant.

The difference becomes more important as transaction volume increases. A business processing ₦1 million in local transactions does not experience the same cost under every processor. The percentage, fixed charge, applicable caps and taxes all need to be included when calculating the actual processing cost.

Setup Costs Matter Too

Transaction fees are only one part of the cost.

Paystack states that its standard integration has no integration fee and no maintenance fee. Businesses can integrate its payment tools into websites and applications or use payment links and other available collection methods.

Flutterwave also allows businesses to start accepting payments through its platform, with payment collection available through multiple channels. Its current pricing documentation focuses on transaction charges rather than a standard monthly platform subscription.

Stripe's standard pricing similarly states that there are no setup fees, monthly fees or hidden fees under its standard pricing.

However, "no setup fee" does not mean an online business has no payment-related expenses. Website development, e-commerce software, currency conversion, refunds, chargebacks, third-party applications and other services can create additional costs.

Settlement Speed Can Affect Cash Flow

A payment gateway can process a customer's payment successfully while the merchant still has to wait before using the money.

For businesses with low working capital, settlement speed matters. A processor with a lower transaction fee may not automatically be the better option if the business needs access to funds quickly and the processor's applicable settlement schedule is longer.

Paystack's standard Nigerian settlement is T+1. Flutterwave also lists T+1 for local Nigerian payments, while international Flutterwave payments are listed at T+5.

Stripe's settlement timing is market-dependent, so businesses considering Stripe should check the payout schedule for their specific account location rather than relying on a generic international figure. Stripe also offers instant payouts in eligible markets at an additional cost.

Which Payment Gateway Should You Choose?

There is no single payment gateway that is automatically best for every online business.

Paystack is a strong option for Nigerian businesses that want a relatively simple pricing structure, local payment collection and next-working-day settlement. Its 1.5% + ₦100 local rate, ₦2,000 transaction cap and published settlement schedule make the cost easier to calculate.

Flutterwave is worth considering when a business wants multiple payment channels and broader international payment capabilities. Its Nigerian local rate is 2%, while international transactions are currently listed at 4.8%.

Stripe is more relevant when the business operates in a supported international market and needs access to Stripe's broader global payments infrastructure. Its standard pricing is 2.9% + $0.30 for domestic card transactions in the market shown on its current pricing page, with additional charges for international cards and currency conversion.

Before registering, calculate the expected monthly transaction value, average order size, percentage of international customers, preferred payment methods and required settlement speed. Then compare the total cost rather than looking only at the headline percentage.

The cheapest payment gateway on paper is not necessarily the cheapest for your particular business. The right choice is the processor whose fees, payment methods, settlement schedule and available features match how your customers actually pay.