The verdict in three sentences
For a Ghanaian store, MTN MoMo at about 1 % is cheaper than Paystack at about 1.5 % on most baskets. But dropping Paystack would lose card users and non-MoMo customers, so the point is not to choose, it is to optimise the mix. On GHS 45,000 monthly revenue, a smart split between the two rails is worth roughly GHS 2,700 per year in transaction fees alone.
The fee comparison
Merchant fees are more than the headline percentage. You must look at caps, settlement delay and the hidden cost of reconciliation.
| Criterion | MTN MoMo | Paystack |
|---|---|---|
| Merchant fee | ~1 % | ~1.5 % |
| Transaction cap | high daily limit | high daily limit |
| Settlement delay | T+1 | T+2 |
| Webhook/API cost | Included | Included |
| Estimated market share | ~55 % | ~40 % |
| Merchant cash-out fee | ~1 % | n/a (bank) |
| Average confirmation | 5-8 s | 3-5 s |
On a GHS 200 basket, MoMo takes GHS 2 versus GHS 3 for Paystack: a GHS 1 gap per transaction that adds up fast over hundreds of orders.
Simulation on GHS 45,000 monthly revenue
Take a store doing GHS 45,000/month, average basket GHS 200, i.e. 225 transactions/month. Here is how the operator mix affects annual fees.
| Scenario | Split | Monthly fees | Annual fees |
|---|---|---|---|
| 100 % Paystack | 0 % / 100 % | GHS 675 | GHS 8,100 |
| 50 / 50 | MoMo / Paystack | GHS 562 | GHS 6,750 |
| 70 % MoMo / 30 % Paystack | MoMo led | GHS 495 | GHS 5,940 |
| 100 % MoMo | 100 % / 0 % | GHS 450 | GHS 5,400 |
Between "all Paystack" and a 70 % MoMo / 30 % Paystack mix, annual savings hit GHS 2,160; pushing MoMo as the default at checkout nears GHS 2,700 saved per year without losing Paystack customers.
How to steer the mix without losing sales
You never force a customer to switch rails. You place MoMo first (default, more prominent button) while keeping Paystack visible as a second choice. That simple ordering often shifts 15 to 20 % of volume toward MoMo, the cheaper rail, without annoying anyone.
Mini case study
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Kwame runs an accessories store in Accra: GHS 45,000/month, today 100 % Paystack, i.e. GHS 675 monthly fees. He adds MoMo as the default button. Within three months the split settles at 65 % MoMo / 35 % Paystack. His fees drop to about GHS 506/month, saving GHS 169 monthly and GHS 2,025 per year without losing a single sale, since both options remain available.
FAQ
Is MoMo always cheaper than Paystack?
On merchant fees, yes: about 1 % versus 1.5 % in 2026. The 0.5-point gap looks small but is 50 % more fee on the Paystack side per transaction.
Why keep Paystack if it costs more?
Because some customers pay by card or have no MoMo wallet. Removing Paystack would drive away ~40 % of potential buyers, costing far more than the fee difference.
Are the daily caps a problem?
Rarely for a retail store. They mainly hit electronics or furniture; you then split the payment or move large amounts to bank transfer.
Does T+1 vs T+2 settlement really affect cash flow?
Yes, for small businesses. Getting MoMo at T+1 permanently improves cash flow by about one day of revenue, useful to restock faster.
Can merchant fees be negotiated?
Above a certain volume, merchant deals exist. Below it, standard rates apply, so optimisation comes from the operator mix.
Let's talk about your project. We configure your checkout to steer the MoMo/Paystack mix and cut fees without losing sales. 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.
