Most Nigerian corporate clients pay by bank transfer, so why bother with a payment gateway? Because the fee is often smaller than you think, and the time saved matching payments is bigger than you think.
How do the fees compare?
Local (naira) payment fees as published by the providers in 2026. Check their pricing pages for current rates:
| Paystack | Flutterwave | Direct bank transfer | |
|---|---|---|---|
| Local fee | 1.5% + ₦100 (₦100 waived under ₦2,500) | 1.4% | Usually free to receive |
| Cap per local transaction | ₦2,000 | ₦2,000 | – |
| VAT on fees | 7.5% on the fee | 7.5% on the fee | – |
| Payment methods | Card, bank transfer, USSD, and more | Card, bank transfer, USSD, and more | Transfer only |
| Confirmation | Instant, automatic | Instant, automatic | You check your bank app |
| Settlement | To your bank on the provider's schedule | To your bank on the provider's schedule | Immediate |
What does the ₦2,000 cap mean for B2B?
On large invoices the cap makes gateway fees tiny as a percentage:
| Invoice | Paystack fee (capped) | As % of invoice |
|---|---|---|
| ₦50,000 | ₦850 | 1.7% |
| ₦500,000 | ₦2,000 | 0.4% |
| ₦3,000,000 | ₦2,000 | 0.07% |
(Before VAT on the fee.) For a ₦3m invoice, ₦2,000 buys instant confirmation and automatic reconciliation.
When is bank transfer better?
- The client's finance team only pays by transfer from their ERP. Many large corporates do.
- Very frequent, small internal transfers where fees add up.
- You want funds immediately rather than on the gateway's settlement schedule.
The downside is reconciliation: matching a transfer to an invoice when the narration says "Payment" and the sender is a different entity from the client name.
When is a payment link better?
- SMEs and individuals who'd rather pay by card or USSD in the moment
- Deposits and mobilisation fees, where speed wins the project
- Retainers, where a link in every invoice email gets paid faster
- Anywhere you want the invoice marked paid automatically
Paystack or Flutterwave?
Both are reliable, widely used and CBN-licensed. Differences are mostly in the details: fees at different price points, dashboard preferences, settlement timing and which one your team already uses. If you have neither, pick one, compare their current pricing pages, and don't over-think it.
The best setup: offer both
Put a "Pay now" link and your bank details on every invoice. Clients who can pay online will, and the payment is recorded automatically. Clients who must transfer can, and a "we've sent it" button tells you to check.
BizBooks does exactly that using your own Paystack or Flutterwave account. Money goes straight to you, and BizBooks never holds it. See online payments.
Frequently asked questions
What are Paystack's fees in Nigeria?
For local payments, 1.5% + ₦100 (with the ₦100 waived under ₦2,500), capped at ₦2,000 per transaction, plus VAT on the fee. Check Paystack's pricing page for current rates.
What are Flutterwave's fees in Nigeria?
Flutterwave publishes a 1.4% fee on local naira payments, capped at ₦2,000 per transaction. Check its pricing page for current rates.
Is a payment gateway worth it for large invoices?
Usually yes. Because local fees are capped at ₦2,000, the cost on a large invoice is a tiny percentage, and you get instant confirmation and automatic reconciliation.
Do clients still pay by bank transfer?
Many Nigerian corporates do. Offer both a payment link and your bank details on every invoice.