The verdict in three sentences
The "1 % Wave" everyone quotes is only the visible part. Adding up withdrawal, aggregator, VAT on commission and failures, the real collection cost often reaches 2.5 to 3.5 %. If you price on 1 %, you pay the difference out of your margin without knowing it.
Breakdown of the real collection cost
2026 orders of magnitude for an average 8,000 FCFA transaction going through an aggregator.
| Fee item | Rate / amount | Cost on 8,000 FCFA |
|---|---|---|
| Provider commission | ~1 % | 80 FCFA |
| Aggregator fee | 0.5 to 1 % + 50 to 100 FCFA fixed | ~110 to 180 FCFA |
| Bank withdrawal fee | 0.5 to 2 % | 40 to 160 FCFA |
| VAT on commission | 18 % of commission | ~30 to 50 FCFA |
| Cost of failures / retries | 1 to 3 % failure | ~20 to 50 FCFA amortized |
| Total real cost | ~2.5 to 3.5 % | ~280 to 320 FCFA |
The bill on 1,000 transactions/month
Same volume (8,000,000 FCFA), whether you count the advertised 1 % or the real cost.
| Cost assumption | Rate | Monthly cost | Annual cost |
|---|---|---|---|
| "Advertised" cost | 1 % | 80,000 FCFA | 960,000 FCFA |
| Low real cost | 2.5 % | 200,000 FCFA | 2,400,000 FCFA |
| High real cost | 3.5 % | 280,000 FCFA | 3,360,000 FCFA |
| Gap to finance | +1.5 to 2.5 pts | 120,000 to 200,000 FCFA | 1.4 to 2.4 M FCFA |
To protect a 15 % margin, you must build this real cost into your selling price, i.e. raise prices by about 2 to 3 % or negotiate your aggregator fees.
For referral partners: turn this diagnosis into income
Do you advise merchants, run a page or an entrepreneur group? Every merchant you show these figures to is a potential client for an e-commerce site with optimized payment. The Kolonell referral partner program pays you for these introductions, depending on the signed project's pole.
| Referred project type | Sale commission | Recurring |
|---|---|---|
| Showcase site | 15 % | 5 % recurring |
| E-commerce (Wave/OM) | 12 % | per contract |
| Marketplace | 10 % | per contract |
| Institutional | 8 % | per contract |
On an e-commerce project signed at 2,000,000 FCFA, your referral commission is 240,000 FCFA. Three introductions per quarter are enough to make it a real income supplement.
Mini case study
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Mariama, who runs an online cosmetics shop in Dakar, sells 1,000 products/month at 8,000 FCFA, i.e. 8,000,000 FCFA. She thought she paid 1 % (80,000 FCFA). In reality, between aggregator, withdrawal and VAT, she pays 2.9 %, or 232,000 FCFA/month. Hidden gap: 152,000 FCFA/month, or 1,824,000 FCFA/year drained from her margin. By negotiating her aggregator and raising prices by 2 %, she recovers the equivalent of more than a month of profit per year.
FAQ
Why does my real cost exceed the advertised 1 %?
Because the 1 % only covers the provider commission. Add the aggregator, withdrawal, VAT on commission and the cost of failures, which brings the total to 2.5-3.5 %.
Does VAT really apply to commissions?
The service commission is generally subject to VAT (18 % in Senegal), which adds a fraction to the cost. Check the detail on your provider invoices.
How do I reduce these hidden fees?
Negotiate your aggregator rate above a certain volume, limit frequent withdrawals by batching, and cut the failure rate with a reliable checkout and automatic retries.
Should I pass these fees on to my prices?
Yes, partly. Raising by 2 to 3 % protects your margin without shocking the customer, especially if your competitors bear the same cost.
How do I become a Kolonell referral partner?
Just introduce us to a merchant interested in a website or online store. If the project signs, you earn your commission per the scale (15 % showcase, 12 % e-commerce, 10 % marketplace, 8 % institutional).
Let's talk about your project. Free audit of your real collection fees, or join our referral partner program. 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.
