The verdict in three sentences
In 2026, MTN MoMo and Airtel Money charge similar merchant fees in Uganda (roughly 1.5 % to 2 %), so the decision rarely comes down to headline rate alone. What separates them is daily transaction caps, settlement speed (T+1 to T+2), and customer penetration in your region. The smart move is to activate the operator with the widest reach among your buyers first, while keeping the second live so you never lose a sale at checkout.
Merchant fees compared by operator
The rates below are a 2026 order of magnitude for a standard merchant account. High-volume merchants can negotiate tiered pricing.
| Operator | Merchant fee | Cap / transaction | Settlement | Withdrawal fee |
|---|---|---|---|---|
| MTN MoMo | 1.5 to 2 % | UGX 7,000,000/day | T+1 (24 h) | 0.5 to 1 % |
| Airtel Money | 1.5 to 2 % | UGX 5,000,000/day | T+2 | 0.5 to 1 % |
| Flutterwave (aggregator) | 1.4 % | Per operator cap | T+1 | Varies |
| Pesapal (aggregator) | 3 to 3.5 % | Per operator cap | T+2 | Varies |
Remember two things: the two mobile money giants are close on fee, so cap and reach decide. MTN typically offers the higher daily cap, which matters for larger baskets.
Real cost by revenue level
This table turns the rate into actual shillings for a full month. That is the true decision criterion.
| Monthly revenue | Cost at 1.5 % | Cost at 2 % | Yearly gap |
|---|---|---|---|
| UGX 2,000,000 | UGX 30,000 | UGX 40,000 | UGX 120,000 |
| UGX 5,000,000 | UGX 75,000 | UGX 100,000 | UGX 300,000 |
| UGX 12,000,000 | UGX 180,000 | UGX 240,000 | UGX 720,000 |
| UGX 25,000,000 | UGX 375,000 | UGX 500,000 | UGX 1,500,000 |
| UGX 40,000,000 | UGX 600,000 | UGX 800,000 | UGX 2,400,000 |
The break-even point for worrying seriously about operator choice sits around UGX 2,000,000/month (about 500,000 FCFA); above it, negotiating from 2 % to 1.5 % funds a real slice of your marketing.
Mini case study
Sarah, who runs a cosmetics shop in Kampala, collects UGX 9,600,000/month online. At a flat 2 % she pays UGX 192,000 in fees. By shifting 70 % of sales to a negotiated 1.5 % rate and keeping 30 % on the default 2 %, her cost drops to: (6,720,000 x 1.5 %) + (2,880,000 x 2 %) = 100,800 + 57,600 = UGX 158,400. She saves UGX 33,600/month, over UGX 400,000/year, without losing a single sale. On her UGX 70,000 average basket, that funds 5 recovered orders each month.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
FAQ
Is MTN MoMo really cheaper than Airtel Money for a merchant?
Not dramatically: both sit around 1.5 to 2 %. The real gap comes from negotiated tiers and daily caps, where MTN often allows up to UGX 7,000,000/day versus UGX 5,000,000 for Airtel.
Can I accept both operators on my site?
Yes, and you should. A multi-operator checkout raises conversion because each buyer pays with the app already on their phone. Kolonell wires both natively.
What is the cap per transaction?
MTN typically allows up to UGX 7,000,000/day and Airtel around UGX 5,000,000/day. For high-ticket sales, check the customer's KYC level first.
How fast do I get paid?
Expect T+1 (24 h) with MTN and T+2 with Airtel depending on your contract. This delay directly affects cash flow if you restock weekly.
Are the fees negotiable?
Yes, above a certain volume. A merchant collecting more than UGX 25,000,000/month can secure tiered pricing from the operator or an aggregator like Flutterwave at 1.4 %.
Let's talk about your project. We wire MTN MoMo and Airtel Money into your checkout and calculate the priority operator for your volume. 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.