The verdict in three sentences
Collecting 1,000,000 in local units never costs just "the headline rate": you must add fixed per-transaction fees, the payout fee, FX, and the cost of failures. Depending on your operator mix, the real bill varies threefold, from ~16,000 to ~45,000 per million. A low-cost-rail-heavy mix is cheapest; a premium-wallet-heavy or card mix costs noticeably more.
Breaking down the cost per million
Take 1,000,000 in volume at an average ticket of 15,000, i.e. 67 transactions. Here are the cost lines, operator by operator.
| Cost line | Low-cost rail | Premium wallet | International card |
|---|---|---|---|
| Variable fee | 1 % = 10,000 | 1.5-3.5 % = 15,000-35,000 | 3.5-3.9 % = 35,000-39,000 |
| Fixed fee (100 x67) | 0-6,700 | 6,700 | 0 |
| Payout fee (0.5 %) | 5,000 | 5,000 | 5,000 |
| FX / conversion | 0 | 0 | 2-4 % if foreign |
| Cost of failures/retries (~1 %) | 10,000 | 10,000 | 10,000 |
| Approximate total | ~25,000-31,700 | ~36,700-56,700 | ~50,000-58,000 |
The surprise: the "headline rate" often represents only half the real cost once fixed fees, payout and failures are folded in.
Three mixes, three bills
Total cost per million depends mostly on how volume splits between operators. Here are three realistic 2026 scenarios.
| Operator mix | Split | Cost per million | Effective cost |
|---|---|---|---|
| Low-cost-rail-heavy | 80 % low-cost / 20 % premium | ~22,000-28,000 | 2.2-2.8 % |
| Balanced | 50 % / 50 % | ~28,000-38,000 | 2.8-3.8 % |
| Premium-wallet-heavy | 20 % / 80 % premium | ~34,000-48,000 | 3.4-4.8 % |
| Card / international | 100 % card | ~48,000-58,000 | 4.8-5.8 % |
Steering more customers toward the cheaper rail can cut your effective cost by over 2 points — on 10 million of monthly volume, that's 200,000 saved per month.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
Mini case study
Kwame, a restaurateur in Accra, collects 5,000,000 (local units)/month in delivery, average ticket 15,000 (333 transactions). His mix was premium-wallet-heavy (80 %), effective cost ~4.3 % = 215,000/month. By nudging customers to pay via the cheaper rail (QR code at the till, checkout prompt), he flips the mix to 70 % low-cost, effective cost ~2.6 % = 130,000/month. Saving: 85,000 per month, i.e. 1,020,000 a year, just by steering the operator mix — without touching his prices or volume.
FAQ
Why is the headline rate misleading? Because it ignores fixed per-transaction fees (100 x number of transactions), the payout fee (~0.5 %), FX, and above all the cost of failures and retries (~1 %). The real cost is often 1.5 to 2 times the headline rate.
Does the number of transactions change the cost? Yes, strongly, because of the fixed fee. At equal volume, a low average ticket multiplies transactions and thus the fixed 100-unit fees. For micro-baskets, this line can exceed the variable fee.
How do I concretely cut my cost per million? Steer customers toward the cheapest operator (often a 1 % rail), reduce failures with better payment UX, and negotiate the payout fee above a certain volume. A low-cost-heavy mix can drop to 2.2 % effective.
Is the cost of failures really ~1 %? As a 2026 order of magnitude, yes: failed payments you retry consume time, sometimes retry fees, and above all cause abandonment. It's estimated around 1 % of volume, more if the payment UX is poor.
Become a Kolonell referral partner
A merchant who ignores their true collection cost often overpays by 2 points. By introducing them to Kolonell through our referral programme, you're paid: 12 % on e-commerce, 15 % + 5 % recurring on a showcase site, 10 % on a marketplace, 8 % on institutional.
Let's talk about your project. We audit your operator mix and cut your real cost per million collected. 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.
