The verdict in three sentences
An aggregator charges 2 to 3 % per transaction but zero payment-rail development; a direct M-Pesa (Daraja) integration drops to around 1 % but requires the equivalent of 500,000 to 1,500,000 FCFA in development plus maintenance. The 2026 break-even sits around a monthly volume of 2,500,000 FCFA equivalent: below it, the aggregator wins; above it, direct pays off. The real question is not the headline rate, it is your volume and your ability to maintain payment code.
Per-transaction cost is only part of the price
Comparing 3 % to 1 % is misleading. You must add development and yearly maintenance to the direct model's cost.
| Cost item | Aggregator | Direct M-Pesa (Daraja) |
|---|---|---|
| Fee per transaction | 2 - 3 % | ~1 % |
| Upfront development | 0 | 500,000 - 1,500,000 FCFA eq. |
| Annual maintenance | Included | 150,000 - 400,000 FCFA eq. |
| API compliance | Handled | On you |
| Time to launch | 2 - 4 days | 3 - 6 weeks |
The aggregator shifts technical risk and maintenance to the provider. Direct gives you the best rate but makes you responsible for API updates and outages.
The break-even by volume
Amortizing 1,000,000 FCFA of development over 24 months (~42,000 FCFA/month) plus maintenance, here is which model wins by monthly volume.
| Monthly volume | Aggregator cost (3 %) | Direct cost (1 % + amortized) | Winner |
|---|---|---|---|
| 500,000 FCFA | 15,000 FCFA | 60,000 FCFA | Aggregator |
| 1,500,000 FCFA | 45,000 FCFA | 72,000 FCFA | Aggregator |
| 2,500,000 FCFA | 75,000 FCFA | 82,000 FCFA | Near tie |
| 4,000,000 FCFA | 120,000 FCFA | 97,000 FCFA | Direct |
| 8,000,000 FCFA | 240,000 FCFA | 137,000 FCFA | Direct |
These 2026 orders of magnitude show that direct only becomes clearly cheaper beyond 2,500,000 to 3,000,000 FCFA/month of sustained volume. Below that, aggregator convenience wins comfortably.
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Mini case study
Fatou runs an online grocery in Nairobi and collects the equivalent of 3,200,000 FCFA/month. On an aggregator at 3 %, she pays 96,000 FCFA/month. On direct M-Pesa at 1 % with 1,000,000 FCFA of development amortized over 24 months plus 300,000 FCFA/year maintenance, her monthly cost falls to around 89,000 FCFA. The gain is real but modest (7,000 FCFA/month); she switches mainly because volume climbs 15 % per quarter.
FAQ
At what volume should I switch to direct? In 2026, the switch pays off beyond 2,500,000 to 3,000,000 FCFA/month equivalent of stable volume. Below that, amortizing development cancels the fee saving.
Is direct really 1 %? The order of magnitude for direct merchant rates is around 1 %, but check your contract. Real cost includes development and maintenance, not just the rate.
Can I start on an aggregator then migrate? That is the recommended path: start on an aggregator to move fast, then migrate to direct when volume justifies the investment. Build an abstraction layer from day one.
Who handles outages on a direct integration? You, or your maintenance provider. That is the hidden cost of direct: an unanticipated API update can block your collections.
Is annual maintenance really necessary? Yes. Budget 150,000 to 400,000 FCFA/year to track API changes, security and webhooks. Without it, the theoretical saving evaporates at the first incident.
Let's talk about your project. We compute your real break-even and advise aggregator or direct based on your volumes. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
