The verdict in three sentences
On paper, mobile money is cheaper (0,55-1,5 %) than cards (up to 3,9 % international via Paystack), but the real cost hides in the failure rate: every failed payment is an abandoned basket. In West and East Africa, cards fail 12 to 18 % of the time against 6 to 10 % for mobile money, widening the gap. The right strategy is not to choose, but to offer both and let the customer decide.
Cost per transaction by method
Here is the 2026 order of magnitude for direct fees, excluding failure impact.
| Payment method | Variable fee | Fixed fee | Failure rate |
|---|---|---|---|
| International card (Paystack/Flutterwave) | 3,9 % | 100 NGN | 12 - 18 % |
| Local card | 1,5 % | 100 NGN | 8 - 12 % |
| Mobile money (M-Pesa) | 0,55 - 1,0 % | 0 | 6 - 10 % |
| Bank transfer | 0,2 - 0,5 % | 50 - 100 NGN | 2 - 4 % |
Bank transfer looks cheapest, but its friction (delay, manual entry) drags conversion down, especially on small baskets.
The real impact of failure rate on net revenue
A failed payment carries no fee but loses the whole sale. Here is the net revenue kept per 100 attempts by average basket.
| Average basket | International card (net after failure + fee) | Mobile money (net after failure + fee) |
|---|---|---|
| 2 000 NGN | ~83 % of GMV | ~91 % of GMV |
| 10 000 NGN | ~84 % of GMV | ~92 % of GMV |
| 50 000 NGN | ~84 % of GMV | ~92 % of GMV |
Across all baskets, mobile money keeps 7 to 9 points more net revenue than international cards, mostly thanks to a lower failure rate. Cards remain essential for diaspora and international buyers.
Mini case study
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Emeka sells tech accessories online in Lagos, average basket 10 000 NGN, 400 orders/month, so 4 000 000 NGN in attempts. On cards only (84 % net) he keeps 3 360 000 NGN. Adding mobile money and local rails as the default (92 % net on 70 % of sales), he climbs to 3 640 000 NGN net. Gain: 280 000 NGN/month without a single extra advertising naira.
FAQ
Is mobile money always cheaper than cards?
On direct fees, yes: 0,55-1,5 % vs up to 3,9 %. On net revenue the gap grows to 7-9 points thanks to a failure rate roughly half as high.
Should I still offer cards?
Yes, for diaspora and international customers without a local mobile money account. Skipping cards loses 10-15 % of potential buyers.
Why do cards fail so often?
3D Secure rejections, bank limits, cards not enabled for international use: 12 to 18 % of attempts fail in Africa in 2026.
Is bank transfer a good option?
Only for large baskets (above ~50 000 NGN) or B2B, due to friction and slower confirmation.
Let's talk about your project. We build a multi-rail checkout that maximizes your net revenue, mobile money first. 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.
