The verdict in three sentences
M-Pesa in Tanzania charges tiered withdrawal fees that scale with the amount, cheap on small sums but climbing fast on large ones. MTN MoMo sits around 1 to 2 % depending on the band, competitive in the mid-range. Airtel Money uses a similar tiered structure to M-Pesa, so the winner depends entirely on the exact amount you cash out.
Cash-out fee grid by operator (2026 order of magnitude)
Amounts below are 2026 estimates in Tanzanian shillings for an agent cash-out. Official tariffs change often — always check the app before the transaction.
| Amount withdrawn | M-Pesa | MTN MoMo (~1.5 %) | Airtel Money |
|---|---|---|---|
| TZS 2,000 | TZS 33 | TZS 30 | TZS 35 |
| TZS 5,000 | TZS 100 | TZS 75 | TZS 105 |
| TZS 10,000 | TZS 220 | TZS 150 | TZS 220 |
| TZS 25,000 | TZS 550 | TZS 375 | TZS 560 |
| TZS 50,000 | TZS 1,100 | TZS 750 | TZS 1,150 |
| TZS 100,000 | TZS 2,500 | TZS 1,500 | TZS 2,600 |
| TZS 500,000 | TZS 7,500 | TZS 7,500 | TZS 7,600 |
| TZS 1,000,000 | TZS 11,000 | TZS 15,000 | TZS 11,000 |
On a TZS 1,000,000 withdrawal, the gap between MTN MoMo and the tiered operators reaches roughly TZS 4,000: at high volume, the operator choice hits your cash flow directly.
What a merchant actually pays
For a business, the real comparison isn't cash-out but the collection cost. Merchant rates typically land around 1 to 2 % of collected value, and aggregators add their own margin on top.
| Collection channel | Estimated 2026 merchant fee | Funds settlement |
|---|---|---|
| M-Pesa Till/Lipa | ~1 to 1.5 % | T+1 |
| MTN MoMo merchant | 1 to 2 % | T+1 |
| Airtel Money merchant | ~1.5 % | T+1 |
| Multi-wallet aggregator | 1.5 to 2.8 % | T+1 to T+3 |
A merchant collecting TZS 30,000,000/month pays about TZS 300,000 at ~1 % versus TZS 450,000 to 840,000 via an aggregator: the annual gap tops TZS 1.8 million.
Mini case study
Asha runs a cosmetics shop in Dar es Salaam and collects TZS 25,000,000/month, 60 % via M-Pesa and 40 % via Airtel Money. On the M-Pesa share (TZS 15,000,000 at ~1.3 %) she pays ~TZS 195,000. On the Airtel share (TZS 10,000,000 at ~1.5 %) she pays ~TZS 150,000. Total: TZS 345,000/month, or TZS 4.14 million/year. Negotiating a volume merchant rate down to 1 % would save her roughly TZS 45,000/month.
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FAQ
Is M-Pesa really cheaper than MTN on small amounts?
Yes — on tiny cash-outs the tiered fee can be as low as TZS 33, below MTN's percentage minimum. On very large amounts the tier caps out and MTN's percentage can overtake it.
Which operator is best for large withdrawals?
Tiered operators like M-Pesa and Airtel cap around TZS 11,000, so on TZS 1,000,000 they beat a flat 1.5 % that would cost TZS 15,000.
How do I lower my overall collection fees?
Steer customers to the cheapest wallet, negotiate a volume merchant rate, and integrate several operators so you aren't locked to one tariff.
Are these figures official?
They are 2026 order-of-magnitude estimates. Grids change frequently — always confirm in the app or with your account manager before a large transaction.
Does cash-out fee affect me if I only send money?
P2P transfers are often cheaper than cash-outs, but the recipient pays when they withdraw — so the effective cost still lands on the amount, just at a different step.
Let's talk about your project. We integrate M-Pesa, MTN MoMo and Airtel Money with smart fee routing for your store. 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.
