The verdict in three sentences
In a market without widespread credit cards, mobile-money installments are the only lever to sell electronics or furniture at 300 000 - 1 500 000 NGN. The simplest and safest model stays the 30-50 % deposit + balance on delivery, which limits default risk while unlocking the purchase. Done well, installments lift the average basket by 40 to 120 % (2026 estimate), at the cost of disciplined follow-up on collections.
Mobile-money installment models (2026)
The figures below are a 2026 order of magnitude observed on appliance and furniture shops in Nigeria, Kenya and Ghana.
| Model | Fee / interest | Estimated default rate | Basket uplift | Suited sectors |
|---|---|---|---|---|
| 30-50 % deposit + balance on delivery | 0 % | 3 to 6 % | +40 to 70 % | Electronics, furniture |
| 3x interest-free (merchant absorbs) | 0 % buyer / 2-4 % merchant | 5 to 10 % | +50 to 90 % | Fashion, high-tech |
| 4x with fees | 3 to 6 % total | 6 to 12 % | +60 to 110 % | Appliances |
| Pay-as-you-go (M-KOPA style) | 2-5 %/month interest | 8 to 15 % | +80 to 120 % | Solar, phones |
| BNPL partner (Credpal, LipaLater) | 0 to 5 %/month | Borne by partner | +50 to 100 % | Multi-sector |
The deposit + balance on delivery is the ideal entry point: the merchant ships only after the deposit and collects the rest on handover. Default risk is lowest here.
Weighing risk against gain
The longer the schedule, the higher the basket, but the higher the default. The trade-off depends on your margin and your ability to chase payments.
| Installment duration | Conversion gain | Collection workload | Recommended if |
|---|---|---|---|
| Deposit + balance (days) | Medium | Low | Early stage, tight cash |
| 3x (3 months) | High | Medium | Margin > 30 % |
| 6x (6 months) | Very high | High | BNPL partner in place |
Mini case study
Amara sells fridges in Accra, average basket 450 000 NGN equivalent. Many customers give up when asked to pay upfront. She launches a 40 % deposit + balance on delivery: the buyer pays 180 000 to reserve via M-Pesa/MoMo, then 270 000 on delivery. Estimated result: monthly sales rise from 18 to 29 units (+61 %), lifting revenue roughly from 8 100 000 to 13 050 000. Her deposit default stays under 5 %, because she only orders the unit after the deposit.
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FAQ
Do installments really raise the basket?
Yes: per our 2026 estimate they lift the average basket by 40 to 120 % depending on model and sector, unlocking otherwise-postponed purchases.
Which model is least risky?
The 30-50 % deposit + balance on delivery: you ship only after the deposit, keeping default under 6 %.
Who carries the risk with a BNPL partner?
The partner finances and carries default; you are paid upfront. In exchange they take a 0 to 5 %/month commission depending on the schedule.
What default rate to expect with PAYG?
Pay-as-you-go is riskier: expect 8 to 15 % default, offset by basket uplift up to +120 %.
Let's talk about your project. We integrate deposit and 3x mobile-money payments into your shop to sell higher-ticket baskets. 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.
