The verdict in three sentences
Most sellers only look at the checkout fee and completely ignore the payout leg (transfer to their wallet) and the cash withdrawal. Real collection cost is collection + payout + withdrawal — and on small amounts, flat-tier payouts can cost more than collection itself. Choose your payout cadence based on the amount, not by daily reflex.
The three legs of the real cost
| Step | 2026 range | Main trap |
|---|---|---|
| Collection (checkout) | 1% to 2% | The only fee everyone watches |
| B2C payout to seller | 0.5% to 1.5% | Often flat tiers, not % |
| M-Pesa B2C (Kenya) | 12 to 55 KES / band | The low band penalizes small payouts |
| Agent cash withdrawal | 0.5% to 1% | Adds up if the seller pulls cash |
| Minimum payout threshold | 5,000 to 10,000 FCFA | Blocks or stacks micro-payouts |
Stacked, these three legs turn a headline "1.5% fee" into a total cost of 2.5 to 3.5% — the gap is your margin going up in smoke.
The effect of payout cadence
Take a seller collecting 100 transactions of 3,000 FCFA (300,000 FCFA volume) and compare three payout cadences, with an average flat-tier payout fee of 100 FCFA per transfer.
| Cadence | # payouts | Total payout fees | Collection (1.5%) | Total cost | % of volume |
|---|---|---|---|---|---|
| Per transaction | 100 | 10,000 FCFA | 4,500 FCFA | 14,500 FCFA | 4.83% |
| Daily | 30 | 3,000 FCFA | 4,500 FCFA | 7,500 FCFA | 2.50% |
| Weekly | 4 | 400 FCFA | 4,500 FCFA | 4,900 FCFA | 1.63% |
| Monthly | 1 | 100 FCFA | 4,500 FCFA | 4,600 FCFA | 1.53% |
Moving from per-transaction payout to weekly drops the cost from 4.83% to 1.63%, i.e. 3.2 margin points recovered without changing a single unit of collection fee. The trade-off: cash arrives later.
Mini case study
Fatou, a seller on a Nairobi marketplace, paid out to her wallet after every order "to feel safe." On 120 sales/month at 2,500 FCFA (300,000 FCFA), her 120 payouts at 100 FCFA cost 12,000 FCFA, plus 4,500 FCFA collection, i.e. 16,500 FCFA (5.5%). Switching to weekly payout (4 transfers), she dropped to 4,900 FCFA (1.63%). Saving: ~11,600 FCFA/month, nearly 139,000 FCFA/year, without touching her prices.
FAQ
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Is the payout fee really significant?
Yes, especially on small amounts paid out frequently. A flat 100 FCFA tier on a 2,500 FCFA payout equals 4% — more than collection itself.
Which payout cadence should I choose?
Weekly is often the best cost/cash-flow trade-off: it divides payout fees by ~7 versus daily while keeping a regular cash stream. Reserve daily payout for large amounts.
How does the minimum payout threshold work?
Below 5,000 to 10,000 FCFA, many systems block or defer the transfer. It forces you to accumulate — which is actually often good for cost.
How does M-Pesa B2C charge in Kenya?
By flat bands (order of magnitude 12 to 55 KES depending on the tier), not by percentage. Small payouts are proportionally the most expensive, hence the value of batching.
Should I avoid pulling cash?
Agent withdrawal adds 0.5 to 1%. If you can pay suppliers directly in mobile money, you avoid this fourth fee leg.
Let's talk about your project. We configure your marketplace payouts to maximize your sellers' net received. 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.
