Cash on delivery still accounts for 55% of orders but cancels 1 in 4
In Senegal, payment still deeply shapes e-commerce profitability. Cash on delivery accounts for about 55% of orders in 2026, but it generates a cancellation rate of 15 to 35% and costs the round-trip shipping on every refusal. Mobile money (Wave, Orange Money) is rising fast and reaches 35% of orders, with a cancellation rate under 5% and fees of 1 to 2.5%.
The choice of payment mix is not a technical detail: it can swing net margin by 4 to 8 points.
Adoption by payment method
| Method | Share of orders 2026 | Trend |
|---|---|---|
| Cash on delivery | 55% | Declining |
| Wave | 22% | Rising sharply |
| Orange Money | 13% | Rising |
| Bank card (Visa/Mastercard) | 6% | Stable |
| Free Money | 3% | Stable |
| Bank transfer | 1% | Marginal |
Wave took the lead in mobile money thanks to its low fees and mass adoption. Bank card remains a minority, held back by low banking penetration and online distrust.
Fees by payment method
| Method | Merchant fees | Settlement time |
|---|---|---|
| Cash on delivery | 1.5-3% (carrier collection) | 3-7 days |
| Wave | 1-1.5% | Instant to 24 h |
| Orange Money | 1.5-2.5% | 24-48 h |
| Bank card | 2.5-3.5% | 2-7 days |
| Free Money | 1.5-2% | 24-48 h |
| Bank transfer | 0-0.5% | 1-3 days |
Cash on delivery looks free but is not: the carrier takes a collection commission, and above all cancellations cost lost shipping, which makes it the most expensive method in reality.
The real cost: the cancellation rate
| Method | Cancellation rate | Hidden cost |
|---|---|---|
| Cash on delivery | 15-35% | Lost round-trip shipping |
| Wave | 2-5% | Near zero, already paid |
| Orange Money | 3-6% | Near zero, already paid |
| Bank card | 2-4% | A few disputes |
| 30% deposit then cash | 6-10% | Half of pure cash |
This is the most important table in this article. A prepaid order is almost certain to complete. One cash-on-delivery order in three can evaporate, and each evaporation costs the shipping.
Worked example: 100 cash orders vs prepaid
Compare 100 orders of 25,000 FCFA, 50% gross margin (12,500 FCFA), shipping 2,500 FCFA.
| Indicator | 100% cash on delivery | 100% prepaid |
|---|---|---|
| Cancellation rate | 25% | 4% |
| Completed orders | 75 | 96 |
| Gross margin collected | 937,500 FCFA | 1,200,000 FCFA |
| Lost shipping (cancellations) | 62,500 FCFA | 10,000 FCFA |
| Payment fees | 56,250 FCFA | 24,000 FCFA |
| Estimated net margin | 818,750 FCFA | 1,166,000 FCFA |
Prepaid brings in 347,000 FCFA more for the same marketing effort, or 42% more net margin, simply because orders complete and shipping is not wasted.
Recommended payment mix strategy
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| Customer segment | Recommended method | Reason |
|---|---|---|
| New customer | Cash or 30% deposit | Reduces purchase friction |
| Loyal customer | Prepaid mobile money | Near-zero cancellation |
| Remote upcountry | Mandatory deposit | Shipping too costly for the risk |
| High basket (>50,000 FCFA) | Prepaid recommended | Protects against big unpaid orders |
The 12-month goal: move the prepaid share from 45% to over 60% by incentivizing (small discount, free shipping) customers to pay by mobile money.
The deposit, the best compromise
A 30% deposit at order time combines the best of both worlds: it keeps the accessibility of cash for the balance while halving the cancellation rate. It is the most profitable and simplest lever to set up.
FAQ
Which payment method dominates Senegalese e-commerce?
Cash on delivery remains the majority with about 55% of orders, but mobile money (Wave and Orange Money) is rising fast and reaches 35%, with much lower cancellation rates.
Is cash on delivery really free?
No. The carrier takes a collection commission of 1.5 to 3%, and above all cancellations of 15 to 35% lose the round-trip shipping. It is the most expensive method in real cost.
What are Wave and Orange Money fees?
Wave charges 1 to 1.5% on the merchant side, Orange Money 1.5 to 2.5%. Settlements are fast, from instant to 48 h.
How do I reduce cancellations without dropping cash?
Ask for a 30% deposit at order time. This halves the cancellation rate (from 25% to 6-10%) while keeping the accessibility of pay-on-delivery for the balance.
Should I offer bank card?
Yes for the diaspora and high baskets, but it remains a minority (6% of orders) and more expensive (2.5 to 3.5%). Prioritize mobile money for the local market.
Let's talk about your project. To optimize your payment mix and cut cancellations, reach Kolonell on 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.
