The verdict in three sentences
Routing each payment to the cheapest eligible rail (least-cost routing) saves 0.3 to 0.8% of revenue. Cards cost 2.5 to 2.9% while mobile money stays at 1 to 1.5%: steering the customer to MTN MoMo, Telecel Cash or AirtelTigo directly changes your margin. At high volume, those fractions of a point add up to thousands of cedis a month.
Least-cost routing: the principle
The idea is simple: do not let chance pick the rail. Show mobile money first, keep the card for those who have no choice, and negotiate your rates as soon as volume allows.
| Rail | Estimated 2026 cost | Speed | When to prefer |
|---|---|---|---|
| MTN MoMo | ~1 to 1.5% | T+1 | Default, all baskets |
| Telecel Cash (promo rate) | ~1 to 1.5% | T+1 | Promotions, scale-up |
| AirtelTigo Money | ~1.5% | T+1 to T+2 | Their customer base |
| Local card | 2.5 to 2.9% | T+1 to T+2 | Fallback without momo |
| International card | 2.9% + fixed | T+2 to T+7 | Foreign customers |
Shifting away from cards toward mobile money when possible is the most direct lever. A 1% steering discount toward momo still pays off, since it costs less than the fee gap with cards.
The volume effect and the savings math
As volume climbs, two extra levers appear: rate negotiation above GHS 500,000 a month, and float earnings during the settlement window. Here is a worked example.
| Scenario (GHS 1,000,000/month) | Split | Blended cost | Monthly fees |
|---|---|---|---|
| Before (60% card, 40% momo) | card 2.9% / momo 1.2% | ~2.22% | ~GHS 22,200 |
| After (30% card, 70% momo) | card 2.9% / momo 1.2% | ~1.71% | ~GHS 17,100 |
| Savings | +30 pts to momo | -0.51 pt | ~GHS 5,100 |
Shifting 30% of volume from card to mobile money saves about half a point, i.e. over GHS 5,000 a month here. Add high-volume rate negotiation and the gap widens further.
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Mini case study — and the Kolonell referral program
Kwame runs a distribution SME collecting GHS 1,000,000 a month, 60% by card at 2.9%. By reorganising his checkout to push MoMo and Telecel Cash first, he moves cards from 60% to 30% of volume and saves about GHS 5,100 a month, over GHS 60,000 a year.
Kwame knows other merchants in the same spot. By referring them to Kolonell, he becomes a business referrer and earns a commission on every signed project. The program pays: 15% + 5% recurring on showcase sites, 12% on e-commerce, 10% on marketplaces, 8% on institutional. Referring three e-commerce stores at 2,000,000 FCFA each earns 720,000 FCFA in commission, without writing a line of code.
FAQ
What is least-cost routing in practice? It routes each payment to the cheapest eligible rail: mobile money first, card as fallback. At scale it saves 0.3 to 0.8% of revenue without touching your prices.
Can I surcharge cards? Surcharge legality depends on local regulation and network rules. A safer alternative is offering a small mobile money discount rather than penalising cards.
At what volume should I negotiate rates? Usually above GHS 500,000 in monthly volume, providers and aggregators will discuss. Consolidate your volume before asking for a discount.
Does the settlement window really earn money? On large volumes, float during T+1/T+2 can generate marginal income, but mainly you must control it for cash flow. T+1 beats T+3.
How do I become a Kolonell referrer? Refer a client, we sign, you earn the commission: 15% + 5% recurring on showcase sites, 12% on e-commerce, 10% on marketplaces, 8% on institutional. Contact us to join the program.
Let's talk about your project. We set up least-cost routing and open the Kolonell business referral program to you. 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.
