The verdict in three sentences
Collecting is not receiving: between a customer's payment and the money actually available in your bank account, a settlement delay creates a permanent working-capital need. An instant payout costs 0.5 to 1 % more but frees the cash same-day; standard T+1 is free but leaves you living with a rolling one-day gap. The right call depends on your margin and buffer, not your gut.
The three payout speeds in 2026
A PSP (payment service provider) or mobile-money aggregator typically offers three payout regimes. Here is the 2026 order of magnitude for a merchant in Nigeria.
| Payout regime | Real delay | Extra fee | Cashflow impact |
|---|---|---|---|
| Instant (on-demand) | < 30 min | +0.5 to +1 % of amount | Cash immediately |
| Standard T+1 | Next business day | 0 % (included) | 1 day frozen |
| Grouped T+2 | 2 business days | 0 %, sometimes -0.1 % | 2 days frozen |
| Weekly | Friday J+1 | 0 % | Up to 7 days |
Two often-forgotten parameters add to this: the minimum payout threshold (5,000 to 10,000 FCFA — below it, the balance rolls over) and the PSP reserve applied to new merchants.
The reserve: the first-three-months trap
To cover disputes and refunds, most aggregators hold a reserve on new accounts. 2026 order of magnitude:
| Account age | Reserve held | Hold period | On 3M FCFA turnover |
|---|---|---|---|
| 0 to 30 days | 8 to 10 % | 30 rolling days | 240,000 to 300,000 FCFA |
| 1 to 3 months | 5 to 8 % | 30 rolling days | 150,000 to 240,000 FCFA |
| 3 to 6 months | 3 to 5 % | 14 days | 90,000 to 150,000 FCFA |
| > 6 months | 0 to 2 % | none or 7 days | 0 to 60,000 FCFA |
A new merchant who counts on 100 % of turnover is wrong: in the first week, only 90 % of the cash is really visible, and with a lag.
Mini case study
Salif, who runs an electronics shop in Lagos, collects 3,000,000 FCFA/month, about 100,000 FCFA/day. His PSP pays out T+1 with an 8 % reserve (2-month-old account).
- Cash frozen by the T+1 lag: ~100,000 FCFA permanently.
- Reserve held: 8 % × 3,000,000 = 240,000 FCFA.
- Total cashflow hole: ~340,000 FCFA frozen continuously.
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If he pays suppliers cash every Monday (500,000 FCFA), this hole may force an overdraft. By shifting 30 % of collections to instant payout (~0.75 % surcharge), he spends ~30,000 FCFA a year in fees but avoids a 4 %/month overdraft that would cost 20,000 FCFA per incident. The math favors targeted instant payouts on restocking days.
FAQ
Does T+1 settlement count weekends?
No. A Friday collection is usually paid out Monday or Tuesday, a real 3-to-4-day lag. On 100,000 FCFA/day, that freezes up to 400,000 FCFA over the weekend.
Is instant payout always worth it?
Rarely on a continuous basis. At a 0.75 % surcharge, it pays off only on days when you must disburse (restocking, wages) and where an overdraft would cost more, i.e. above ~3 %/month interest.
How can I shrink the PSP reserve faster?
By building account age and a low dispute rate. A refund rate under 1 % over 3 months often moves the reserve from 8 % to 3 %, freeing ~150,000 FCFA on 3M FCFA of turnover.
What cash buffer should I target?
Order of magnitude: 2 to 3 weeks of fixed costs. For a shop with 400,000 FCFA of monthly costs, that means a 200,000 to 300,000 FCFA buffer dedicated to the settlement lag.
Can cash projection be automated?
Yes. A dashboard wired to your PSP API projects available cash at 7, 14 and 28 days, accounting for delays and reserve. It is the first module we bolt onto high-volume e-commerce stores.
Let's talk about your project. We build cashflow dashboards that project your real cash, factoring in settlement delays and PSP reserves. 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.
