The verdict in three sentences
Mobile money transaction taxes stacked on top of PSP fees push the real cost of a checkout to 2.5-4.5 %, too heavy a line to absorb silently. The real decision is commercial, not technical: pass the tax to the customer or bake it into the displayed price. Ignore this maths and you shave a point or two of margin off every sale without noticing.
Pass it on or bake it in?
Passing it on explicitly (a "transaction fee" line) is transparent but can trigger cart abandonment. Baking it into the price protects conversion but assumes you have recalibrated your margin. Most high-performing stores in 2026 bake it in and advertise "no extra checkout fees."
| Approach | Upside | Risk |
|---|---|---|
| Pass on (separate line) | Margin protected, transparent | Cart abandonment +5-10 % |
| Bake into price | Conversion protected | Margin to recalibrate |
| Absorb silently | Nothing to display | Loss 2.5-4.5 %/sale |
| Free above threshold | Encourages bigger baskets | Display complexity |
Rates by market and real cost in 2026
The figures below are 2026 ballparks to confirm with your PSP and local regulation, which change often.
| Market | MoMo transaction tax | Exemption threshold | Who often pays |
|---|---|---|---|
| Ghana (e-levy) | ~1 % | GHS 100/day | Customer |
| Kenya | Excise on fees | Per operation | Customer |
| Uganda | ~0.5 % on withdrawals | Variable | Customer |
| Tanzania | Tiered levy | Amount-based | Customer |
| Nigeria | Stamp/EMT duty | Above threshold | Customer |
Stacking PSP fees (1.5-3 %) and tax (0.5-1.5 %), the real cost lands between 2.5 % and 4.5 %. On a GHS 300 basket, that is roughly GHS 5-9 in PSP fees + GHS 3 in tax, or GHS 8-13 total.
Mini case study
Ama, who runs an accessories store in Accra, ships 400 orders a month, average basket GHS 300, for GHS 120,000 revenue. At a 4 % real cost, fees + tax total GHS 4,800 a month. By baking 4 % into her displayed prices (basket at GHS 312) and messaging "no fees at checkout," she neutralises the loss while keeping abandonment stable: margin preserved of GHS 4,800/month, nearly GHS 57,600 over the year.
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FAQ
Is the mobile money tax the same in every market?
No. It ranges roughly from 0.5 % to 1.5 % depending on the country and operation type, with different exemption thresholds. Always confirm the applicable rate with your PSP before setting prices.
Should I pass on or bake in the tax?
Baking it into the price protects conversion better: a separate "fee" line lifts cart abandonment by 5 to 10 %. Most high-performing stores bake fees in and display "no extra fees."
How do I find my real checkout cost?
Add the PSP rate (1.5-3 %) to the local tax (0.5-1.5 %). The total, 2.5-4.5 %, is the percentage to build into your margin on every sale.
Does Ghana's e-levy apply to my store?
In Ghana the e-levy targets about 1 % of transfers above a daily threshold (around GHS 100). The customer usually bears it, but it can weigh on your conversion rate if you don't anticipate it.
Let's talk about your project. We calibrate your pricing and checkout to absorb taxes and fees without losing conversion. 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.
