The verdict in three sentences
In 2026, a payment aggregator simplifies multi-operator integration but adds a fee layer you must arbitrate. A single API covers M-Pesa, Airtel Money, cards and bank rails, versus four separate direct integrations — at the price of 2.5 to 3.5% commission instead of the ~1% of a direct till. The right call depends on your volume and technical capacity.
Comparing the three aggregators
Flutterwave and DPO lead East Africa, while Paystack (a Stripe company) pushes expansion. Here are 2026 orders of magnitude.
| Aggregator | Commission | Settlement | Operators covered | EA countries |
|---|---|---|---|---|
| Flutterwave | 2.5 – 3.5% | T+1 to T+3 | 12 – 15 | 8+ |
| Paystack | 1.5 – 2.9% | T+1 to T+2 | 6 – 10 | expanding |
| DPO Group | 2.5 – 3.5% | T+2 to T+3 | 10 – 12 | 8+ |
| M-Pesa (direct till) | ~1% | T+1 | 1 (M-Pesa) | 1 |
The key differentiator: an aggregator pools M-Pesa, Airtel Money, cards and banks behind one integration, whereas direct requires wiring and maintaining each API separately.
Direct vs aggregator: when each model wins
The choice hinges on volume and engineering team. Here is the priced trade-off on KES 5,000,000 monthly revenue.
| Criterion | Direct (M-Pesa) | Aggregator |
|---|---|---|
| Average commission | ~1% | ~3% |
| Fees on KES 5,000,000 | KES 50,000 | KES 150,000 |
| Initial integration cost | 4 APIs to wire | 1 API |
| Technical maintenance | high | low |
| Payout fees | low | per-payout charge |
| Reconciliation | per-operator manual | centralized |
At this volume, direct saves KES 100,000/month, but demands a team able to maintain 4 integrations and their webhooks. For a fast launch without in-house dev, the aggregator is often the right first-year choice.
Mini case study
Fatou launches a fashion marketplace in Nairobi. She targets KES 4,000,000 revenue in the first quarter, with no dedicated tech team. She hesitates between Flutterwave (aggregator, 3%) and a direct M-Pesa integration (1% average).
With Flutterwave: 4,000,000 × 3% = KES 120,000 in fees, but a 3-day integration and zero maintenance.
Direct: 4,000,000 × 1% = KES 40,000 in fees, but 3 weeks of development (~KES 450,000 of work) plus webhook maintenance.
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Over the quarter, the aggregator costs KES 360,000 in fees versus KES 120,000 direct — but direct requires KES 450,000 upfront. Conclusion: Fatou starts on Flutterwave, then switches to direct once her volume exceeds KES 7,500,000/month, the point where fee savings repay the build.
FAQ
Which aggregator covers the most East African countries?
Flutterwave and DPO typically offer the widest reach at 8+ countries and 10–15 operators. Paystack is expanding its footprint progressively across the region.
What does an aggregator really cost?
Expect 2.5 to 3.5% commission plus possible per-payout fees. That is 2 to 3 times the cost of a direct M-Pesa till, but with no multi-API development cost.
What is the settlement delay?
Aggregators settle in T+1 to T+3 depending on contract and underlying operator. A direct M-Pesa till is faster (T+1), which matters for cash flow.
Can I start on an aggregator then move direct?
Yes, that is the recommended strategy: launch fast on an aggregator, then migrate to direct integration once monthly volume passes KES 7,500,000, the development break-even.
Are the webhooks reliable?
Quality varies: a good aggregator sends robust confirmation webhooks, but always implement a fallback reconciliation. A poor integration produces "paid but unconfirmed" orders.
Let's talk about your project. We advise between aggregator and direct integration by volume, and wire it all up. 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.
