The verdict in three sentences
Selling to the diaspora means displaying the customer's currency and controlling your FX margin, or conversion quietly eats your profit. PSPs apply an FX markup of 1.5–3.5% above the interbank rate, and Stripe adds +1% conversion + 2% international card. For volatile currencies like KES/NGN the FX risk is real and must be priced in — unlike the West African franc zone where the XAF/XOF is pegged to the euro at 655.957, removing FX risk toward Europe.
Display currency vs settlement currency
Two choices shape your checkout. The display currency is what the buyer sees (49€ instead of 32,145 FCFA); the settlement currency is what you get paid in. Between the two, someone absorbs the spread: you (reduced margin), the customer (inflated price), or a managed mix. A Nairobi store settling in KES while displaying USD carries genuine FX volatility that must be margined.
| Display currency | PSP | FX markup | Int'l card fee | Settlement | Who absorbs spread |
|---|---|---|---|---|---|
| USD (US diaspora) | Stripe | +1% conversion | +2% | T+2–T+7 | Merchant if fixed price |
| EUR (EU diaspora) | Stripe | +1% conversion | +2% | T+2–T+7 | Merchant or customer |
| KES local | M-Pesa | 0 (local currency) | — | T+1 | Nobody |
| USD via aggregator | Local PSP | +1.5–3.5% | included | T+3–T+7 | Customer (rounded price) |
*2026 orders of magnitude; the XAF/XOF = EUR 655.957 peg removes FX risk toward the euro.*
Psychological rounding and payout fees
A diaspora price must be round in the displayed currency: 49€ converts cleanly, but showing 32,145 FCFA to a Paris buyer kills conversion. Conversely a local customer wants to see 32,000 FCFA, not 48.78€. The rule: set a round price per currency and keep the spread in your margin, not in an awkward number.
| Line item | KES local | USD diaspora | EUR diaspora |
|---|---|---|---|
| Displayed price | KES 5,900 | $55 | 49€ |
| Embedded FX markup | 0% | ~2–3% | ~1–2% |
| International payout fee | — | ~1.5–2% | ~1–1.5% |
| Settlement | T+1 | T+2–T+7 | T+2–T+7 |
| FX risk | Real (KES/USD) | Real | None (peg) |
Mini case study
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Wanjiru runs a homeware brand in Nairobi and sells to the Kenyan diaspora in the US. On a $55 basket, if she lets Stripe convert without margining, she nets $55 − 1% conversion − 2% int'l card − 1.5% payout ≈ $52.50, i.e. ~$2.50 lost per order. Over 200 orders/month that's $500 (≈300,000 FCFA equivalent) evaporating. By embedding a 3% markup in the displayed price (a rounded $57), she neutralises the spread without hurting conversion, while pricing in the KES/USD volatility she cannot ignore.
FAQ
What FX markup do PSPs apply? In 2026, budget 1.5–3.5% above the interbank rate depending on the aggregator, plus +1% conversion + 2% international card on Stripe.
Is there FX risk in the franc zone? Not toward the euro: the XAF/XOF is pegged at 655.957 FCFA per €1, so no FX risk. Toward volatile currencies like KES or NGN the risk is real and must be margined.
Should I display in local currency or USD/EUR? Display the customer's currency: a rounded local price for locals, a round $55 or 49€ for the diaspora — an awkward number kills conversion.
How fast am I settled? Local mobile money settles at T+1; international card payments settle at T+2 to T+7 depending on PSP and currency.
Who pays the conversion spread? Whoever you decide: embed it in a round price per currency so the customer absorbs it unseen, rather than eroding your margin.
Become a Kolonell referral partner
Know brands wanting to sell to the diaspora without losing to FX? The Kolonell referral (apporteur d'affaires) programme pays you: 12% on an e-commerce build, 15% + 5% recurring on a showcase site, 10% on a marketplace, 8% on institutional. One introduction, one commission.
Let's talk about your project. We configure your multi-currency checkout to capture the diaspora without losing on FX. 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.
