The verdict in three sentences
In Nairobi in 2026, mobile money nets more than card for nearly every local basket. An M-Pesa Till at around 1.5 % structurally leaves more in your pocket than an international card at 3.8 %. The rule: mobile money by default, card only for the diaspora paying in euros or dollars.
Fees per payment method in Kenya
2026 orders of magnitude on the merchant side, before volume negotiation. West African FCFA figures are kept where relevant for regional readers.
| Payment method | Merchant fee | Fixed fee | Net on 15,000 |
|---|---|---|---|
| M-Pesa Till (low tier) | 1.0 % | 0 | 14,850 |
| M-Pesa Till (standard) | 1.5 % | 0 | 14,775 |
| Airtel Money merchant | 2.0 % | 0 | 14,700 |
| Bank transfer rail | 2.0 % | 0 | 14,700 |
| Local card | 2.9 % | 100 | 14,465 |
| International card | 3.8 % | 100 | 14,330 |
On a 15,000 basket, the gap between M-Pesa and an international card is 520 per transaction. Multiplied by volume, it becomes a real margin line.
The impact on 3,000,000 in monthly volume
Take 200 transactions at 15,000, so 3M in volume.
| Collection scenario | Monthly fees | Saving vs all-card |
|---|---|---|
| 100 % international card (3.8 % + 100) | 134,000 | — |
| 100 % Airtel Money (2 %) | 60,000 | 74,000 |
| 100 % M-Pesa standard (1.5 %) | 45,000 | 89,000 |
| 100 % M-Pesa low tier (1 %) | 30,000 | 104,000 |
| Mix 70 % M-Pesa + 30 % card | 71,700 | 62,300 |
By pushing customers toward mobile money by default and reserving card for the diaspora, a realistic 70/30 mix saves roughly 42,000 a month versus a card-centric checkout — over 500,000 across the year.
Mini case study
Ibrahim runs an online sneaker shop in Nairobi. He sells 3M/month. Initially his checkout only offered card: 134,000 in monthly fees, and a high abandonment rate because many Kenyan customers have no card. By moving M-Pesa Till to the top of the checkout, with card as a secondary option, he drops to ~72,000 in fees and his conversion climbs because customers pay with what is in their pocket. Result: 62,000 in fees saved per month and more orders converted.
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FAQ
Why does card stay so expensive locally?
Cards carry stacked interchange, network and gateway fees, hence a 2.9–3.8 % order of magnitude in 2026. Mobile money short-circuits that chain.
Should I really keep card if it is more expensive?
Yes, for the diaspora. A customer in London or Toronto pays in pounds or dollars by card: without that option you simply lose the sale.
Is M-Pesa Till really at 1 %?
That is the low-tier 2026 order of magnitude; standard tiers run around 1.5 %. Confirm per your Till band, but M-Pesa stays the cheapest per unit.
How do I push customers toward mobile money?
Put M-Pesa as the first checkout button, with a visible logo, and card lower down. Display order massively changes the real mix.
Is the 70/30 mix realistic for every sector?
It varies. A mass-market local shop reaches 85 % mobile money; a premium diaspora-focused brand climbs to 50 % card. Measure your real mix after a month.
Let's talk about your project. We configure your Nairobi checkout to maximize mobile money while keeping card for the diaspora. 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.
