The verdict in three sentences
An aggregator charges more in percentage (≈ 2.8% + TZS 200) but puts you live in 2 days without touching operator APIs. Direct M-Pesa / Airtel Money integration drops to 1.8% but costs 15 to 25 dev-days plus maintaining two webhooks. The break-even sits around TZS 32m/month: below it the aggregator wins, above it direct becomes worth it.
Structural comparison 2026
The two approaches don't just differ on rate. Here are the criteria that actually matter.
| Criterion | Aggregator | Direct integration |
|---|---|---|
| Collection rate | 2.8% + TZS 200 | 1.8% |
| Onboarding | 2 days | 3 to 6 weeks |
| Initial dev cost | ≈ 0 | 15–25 dev-days |
| Webhooks to maintain | 0 (managed) | 2 (M-Pesa + Airtel) |
| Operator coverage | M-Pesa, Airtel, Tigo | per signed contracts |
| Settlement | T+2 | T+1 |
The aggregator pools KYC onboarding and compliance; direct makes you owner of the operator relationship and the rate.
Break-even, in numbers
At an estimated dev cost of TZS 9.6m (20 dev-days at TZS 480k), let's compare total 12-month cost by volume.
| Monthly volume | Aggregator/yr (2.8%) | Direct/yr (1.8% + dev) | Winner |
|---|---|---|---|
| TZS 12m | TZS 4.03m | TZS 12.2m | Aggregator |
| TZS 24m | TZS 8.06m | TZS 14.8m | Aggregator |
| TZS 32m | TZS 10.75m | TZS 16.5m | Aggregator |
| TZS 60m | TZS 20.2m | TZS 22.6m | Close |
| TZS 100m | TZS 33.6m | TZS 31.2m | Direct |
Direct only truly wins above TZS 80m/month, once dev is absorbed. In year 2, with no dev to refinance, the threshold drops toward TZS 32m/month.
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Mini case study
Ibrahim, who runs a restaurant with delivery in Dar es Salaam, collects TZS 24m/month. Direct would cost TZS 432k/month in fees but TZS 9.6m dev in year 1, so TZS 14.8m total. Via aggregator: TZS 8.06m/year. He stays on the aggregator, saves TZS 6.7m the first year, and will switch to direct once volume clears TZS 60m/month.
FAQ
At what volume should I go direct? Expect break-even around TZS 32m/month in steady state (year 2), and closer to TZS 80m/month in year 1 because of dev cost.
Is 15 to 25 dev-days realistic? Yes for a robust M-Pesa + Airtel integration with webhooks, retry and reconciliation. A rushed integration is cheaper but produces unreconciled payments.
Does an aggregator cover enough operators? In Tanzania it covers M-Pesa, Airtel and Tigo, enough to capture most mobile-money volume without multiplying contracts.
Can I start on an aggregator then migrate? That's the recommended play: launch fast, measure real volume, then migrate to direct when the math justifies it.
How long is direct onboarding? Expect 3 to 6 weeks between merchant-contract signing, KYC approval and production webhook tests.
Let's talk about your project. We launch your store on an aggregator in 2 days and prepare the migration to direct integration when the time comes. 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.
