The verdict in three sentences
Some of your customers have no bank account and no funded wallet, but they do have airtime: it then becomes a payment method. On micro-transactions under UGX 8,000, airtime and prepaid vouchers can capture 10 to 20 % extra conversion on the unbanked segment. The trade-off is a high conversion fee (8-15 %): reserve it for small baskets and digital products.
Add airtime/vouchers or stick to mobile money only?
Sticking to mobile money excludes customers with no funded wallet. Adding airtime and prepaid vouchers (scratch cards) as a third option opens payment to that segment — but at fees far higher than MoMo.
| Method | 2026 fees | Cap | Target |
|---|---|---|---|
| Mobile money | 1.5-3 % | High | Mass market |
| Airtime | 8-15 % | UGX 20k-40k/day | Unbanked |
| Prepaid voucher | 3-6 % | Per voucher | No wallet |
| Card | 2-3 % + fixed | High | International |
Where airtime pays off — and where it doesn't
Airtime does not suit every basket: above a few thousand UGX, the 8-15 % fee destroys margin. It shines on micro digital products, top-ups and content.
| Use case | Basket | Airtime relevant? |
|---|---|---|
| Digital content | < UGX 4,000 | Yes |
| Micro top-up / subscription | < UGX 8,000 | Yes |
| Small accessory | UGX 8k-20k | Judgement call |
| Mid physical product | > UGX 20,000 | No (fees too heavy) |
Around 25 to 40 % of micro-transactions under UGX 8,000 can be paid in airtime in unbanked segments. The prepaid voucher, cheaper (3-6 %), is an alternative for slightly higher amounts.
Mini case study
Brenda, who sells digital content and top-ups in Kampala, does 1,500 micro-sales/month at UGX 3,000, of which 30 % are unbanked customers she used to lose for lack of a suitable option. By adding airtime, she recovers those 450 sales: 450 × UGX 3,000 = UGX 1,350,000 in revenue. After 12 % airtime fees (UGX 162,000), she keeps ~UGX 1,188,000/month in net revenue she had none of before — pure gain on a previously unreachable segment.
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FAQ
Why are airtime fees so high?
Converting airtime into usable cash costs 8 to 15 %, far above mobile money (1.5-3 %). It's the price of access to an unbanked segment; reserve airtime for small baskets where that cost stays bearable.
What is the airtime payment cap?
Generally UGX 20,000 to 40,000 per day depending on the operator. This cap confirms airtime targets micro-transactions, not large baskets.
Airtime or prepaid voucher: which to choose?
Airtime is the most universal but the most expensive (8-15 %). The prepaid voucher (scratch card) costs 3-6 % and suits slightly higher amounts. Offering both covers more customers.
How much extra conversion can I expect?
On the unbanked segment, adding airtime/vouchers can bring 10 to 20 % more conversion. The gain is real but concentrated on small baskets and digital products.
Let's talk about your project. We add airtime and prepaid vouchers to your checkout to capture unbanked customers. 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.
