The verdict in three sentences
A mobile money merchant can be profitable and out of cash on the same day: the money is collected but not yet paid out. The settlement lag (T+0 to T+2) combined with weekly payouts permanently ties up part of revenue. In 2026 a store's survival depends not on its margin but on its cash plan and its safety buffer.
Where the cash tensions come from
Three lags stack up. First settlement: collected money reaches the bank 0 to 2 days late depending on the operator. Then supplier or vendor payouts, often weekly. Finally fixed costs (rent, salaries, stock) which fall on fixed dates without waiting. The store pays before it has been paid.
| Settlement cycle by operator | Delay (2026 order of magnitude) | Share of revenue typically in transit |
|---|---|---|
| Wave merchant | T+0 to T+1 | 3 to 6 % |
| Orange Money | T+1 | 4 to 8 % |
| Free Money | T+1 to T+2 | 6 to 12 % |
| Stripe international | T+2 to T+7 | 10 to 25 % |
| Multi-operator mix | Variable | 5 to 10 % |
The typical monthly cash plan
A simple cash plan lines up real inflows (net, after settlement) against dated outflows. The goal: never dip below the safety buffer, usually set at 15 to 30 days of fixed costs.
| Monthly item (store, 15M FCFA revenue) | Estimated amount | Timing |
|---|---|---|
| Expected net inflows | 14,700,000 FCFA | Spread, after ~2 % fees |
| Rent | 400,000 FCFA | Day 1 of month |
| Salaries | 1,800,000 FCFA | Month-end |
| Stock replenishment | 9,000,000 FCFA | Weekly |
| Supplier payouts | 2,500,000 FCFA | Weekly |
| Target safety buffer | 1,500,000 FCFA | Permanent |
Mini case study
Fatou runs a multi-service store (transfers + accessories) in Thiès, collecting 12,000,000 FCFA a month. She thought she had all her revenue, but about 8 % — i.e. 960,000 FCFA — was permanently in transit (T+1/T+2 settlement and weekly payouts). One month, her 9,500,000 FCFA stock reorder landed the same day as salaries: an overdraft narrowly avoided. After building a 1,800,000 FCFA buffer (15 days of costs) and smoothing her payouts, she never faced a tension again, for a one-off cost of building the buffer.
FAQ
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Why is my store profitable but always short of cash?
Because profitability (margin) and liquidity (available cash) are two different things. With 8 to 12 % of revenue in transit and costs on fixed dates, you can be profitable and out of cash the same day.
What safety buffer should I target?
Between 15 and 30 days of fixed costs. For a store with 2,000,000 FCFA in monthly costs, that means 1,000,000 to 2,000,000 FCFA kept available at all times.
How do I reduce money in transit?
Favour fast-settlement operators (Wave T+0/T+1), negotiate more frequent payouts, and track real net rather than gross collected.
Is a cash plan complicated?
No: a monthly table of dated inflows/outflows is enough. Automating it from Wave/Orange Money statements takes a few days and avoids nasty surprises.
Is Stripe settlement a problem?
It can be: T+2 to T+7 ties up 10 to 25 % of international revenue. A store selling heavily abroad needs a larger buffer.
Let's talk about your project. We build your automated cash plan and optimise your settlement cycles. 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.
