Flutterwave vs Paystack: Hidden Fees, Secret Charges & Shocking Differences

Do you know that over 70% of Nigerian freelancers struggle to receive payments from international clients?

The frustration is real!

I’ve been there. When I started my freelance writing business 10 years ago, getting paid was wahala! I tried everything – PayPal Nigeria (useless), Payoneer (withdrawal fees go choke person), and even direct bank transfers (stress upon stress!).

Then I found Flutterwave. At first, it seemed like my savior.

Payments were smooth, and I could receive international funds.

But after some months, I started noticing some things – certain transaction failures, customer support delays, and unexpected charges.

So, I switched to Paystack. And guess what? Things became easier. But is Paystack truly better than Flutterwave?

That’s what this blog post will reveal!

What You Will Learn

By the end of this guide, you will know:

The differences between Paystack and Flutterwave.
Which payment gateway is best suited for your business.
Hidden fees and charges they won’t tell you about.
How to set up and withdraw your funds seamlessly.
The best alternatives if neither works for you.

What is Paystack?
What is Flutterwave?
Brief History of Paystack
Brief History of Flutterwave
Who is Flutterwave for?
Who is Paystack for?
Pros of Paystack
Cons of Paystack
Pros of Flutterwave
Cons of Flutterwave
Battle of Features: Paystack vs Flutterwave
Pricing: Flutterwave vs Paystack, which is cheaper?
Customer support services: Paystack vs Flutterwave
Payment Methods: Flutterwave vs Paystack
Foreign Currencies Used: Paystack vs Flutterwave
What do payment gateways like Paystack and Flutterwave do?
The top 5 best alternatives to Paystack and Flutterwave for Nigerians
FAQ Section

What is Paystack?

Paystack is one of Nigeria’s leading payment gateways, allowing businesses to accept payments online and offline seamlessly.

It supports multiple payment methods, including bank transfers, debit/credit cards, and USSD.

Founded in 2015 by Shola Akinlade and Ezra Olubi, Paystack was built to simplify digital payments in Africa.

In 2020, the company was acquired by Stripe for $200 million, solidifying its place as a top payment processor in Nigeria and beyond.

What is Flutterwave?

Flutterwave is another major player in the Nigerian and African fintech space.

Founded in 2016 by Olugbenga Agboola and Iyinoluwa Aboyeji, Flutterwave provides businesses with tools to process international and local payments easily.

With its innovative features like “Barter” and “Send,” Flutterwave has positioned itself as an all-in-one financial solution for African businesses.

Brief History of Paystack

Paystack started as a small startup looking to fix Nigeria’s online payment problems.

The founders noticed that businesses were struggling to receive payments from customers, and they built a platform to solve this.

The company quickly grew, gaining thousands of merchants, and eventually caught the attention of Stripe, which led to its massive acquisition.

Brief History of Flutterwave

Flutterwave was created to provide businesses with a simple way to accept payments globally.

Over the years, it has expanded into multiple African countries and partnered with big brands like Uber and MTN.

It has won several awards and continues to be one of Africa’s biggest fintech success stories.

Who is Flutterwave for?

Flutterwave is ideal for:

Businesses that need to process international transactions.
E-commerce platforms looking for a seamless payment solution.
Freelancers and consultants working with foreign clients.

Who is Paystack for?

Paystack is best for:

Nigerian businesses focused on local transactions.
Small businesses that want an easy-to-use payment solution.
Startups looking for affordable transaction fees.

Pros of Paystack

Easy integration with websites and apps.
Supports multiple payment methods.
Affordable transaction fees.

Cons of Paystack

Limited support for some international transactions.
Payout delays can occur during bank downtimes.

Pros of Flutterwave

Supports multiple foreign currencies.
Great for businesses that need to process global payments.

Cons of Flutterwave

Higher fees compared to Paystack.
Customer support can be slow at times.

Battle of Features: Paystack vs Flutterwave

Both platforms offer great features, but Paystack is better for local transactions, while Flutterwave shines in international payments.

Pricing: Flutterwave vs Paystack, which is cheaper?

Paystack has lower transaction fees for local payments, while Flutterwave is more expensive due to its international capabilities.

Customer support services: Paystack vs Flutterwave

Paystack generally has better customer support response times, while Flutterwave has faced complaints about delays.

Payment Methods: Flutterwave vs Paystack

Both platforms support debit/credit cards, bank transfers, and USSD, but Flutterwave offers more international options.

Foreign Currencies Used: Paystack vs Flutterwave

Flutterwave supports more global currencies, while Paystack focuses on African currencies.

What do payment gateways like Paystack and Flutterwave do?

Payment gateways act as the bridge between businesses and banks, enabling seamless digital transactions.

The top 5 best alternatives to Paystack and Flutterwave for Nigerians

Opay
Monnify
Remita
VoguePay
Interswitch

FAQ Section

Which payment gateway is best in Nigeria?

It depends on your needs. Paystack is great for local businesses, while Flutterwave is ideal for global transactions.

How much does Paystack charge per transaction?

1.5% for local payments and 3.9% for international transactions.

How much does Flutterwave charge per transaction in Nigeria?

2.5% for local transactions and up to 3.8% for international payments.

Conclusion

If you need a reliable payment gateway, Paystack and Flutterwave are your top choices.

Choose based on your business needs!

Simon Taki Zaku

Founder, CEO, IbiFoundry LLC

For the IbiFoundry.com.ng E-magazine.ibifoundry@gmail.com; simonzakucom@gmail.com.