Mobile Money Fees in Africa: M-Pesa vs MTN MoMo

Mobile money has transformed how Africa moves money. Over 200 million active mobile money accounts operate across the continent, processing billions of dollars in transactions every month. For hundreds of millions of Africans without traditional bank accounts, platforms like M-Pesa, MTN MoMo, and Airtel Money are the primary financial infrastructure — used for everything from paying rent and school fees to receiving salaries and running businesses.

But these services are not free. Fees for person-to-person (P2P) transfers, cash withdrawals, merchant payments, and cross-border transactions vary significantly across platforms and countries. This guide provides a side-by-side comparison so you can understand exactly what you are paying.

The Big Three: M-Pesa, MTN MoMo, Airtel Money

M-Pesa (Safaricom / Vodacom)

Launched in Kenya in 2007, M-Pesa is the original and most widely used mobile money platform in Africa. It is operated by Safaricom in Kenya and Vodacom in Tanzania, Mozambique, DRC, Lesotho, Ghana, and Egypt. With over 50 million monthly active users and processing more than $30 billion per month, M-Pesa dominates East African mobile finance.

MTN Mobile Money (MoMo)

MTN MoMo operates in 16 African markets across West, Central, and East Africa. With over 60 million active users and a rapidly growing fintech arm (MTN MoMo PSB in Nigeria), it is the largest mobile money service by geographic reach. MTN's strategy of obtaining Payment Service Bank licenses has allowed it to expand beyond traditional telco-led money transfer into savings, lending, and payments.

Airtel Money

Airtel Money operates in 14 African countries, primarily in East and Central Africa. It has a particularly strong presence in Uganda, Tanzania, Malawi, and Kenya. Airtel Money tends to compete on price, often offering lower withdrawal and transfer fees than M-Pesa in markets where both operate.

Fee Comparison: P2P Transfers

Person-to-person transfers — sending money from one mobile wallet to another — are the most common mobile money transaction. Fees vary by platform, country, and amount.

Key insight: Same-network P2P transfers are free or nearly free across all major platforms. The cost increases significantly for cross-network transfers (e.g., M-Pesa to Airtel Money) and even more for cross-border transactions.

Fee Comparison: Cash Withdrawals

Withdrawing cash from an agent is where mobile money platforms make a significant portion of their revenue. These fees are typically tiered based on the withdrawal amount.

Key insight: Airtel Money consistently undercuts M-Pesa and MTN MoMo on withdrawal fees in markets where they compete directly (Kenya, Uganda). This is a deliberate pricing strategy to attract users from the dominant platform. For frequent withdrawers, the savings add up.

Cross-Border Mobile Money

Sending money across African borders using mobile money has improved dramatically but remains more expensive than domestic transfers. The main options are:

M-Pesa International

M-Pesa supports cross-border transfers between Kenya, Tanzania, DRC, Mozambique, and other Vodacom/Safaricom markets. Fees are typically 3-5% of the transfer amount, which is competitive with traditional remittance channels but more expensive than fintech alternatives like digital currency converters.

MTN MoMo Cross-Border

MTN enables transfers between several of its 16 African markets. Through partnerships with Remitly and other providers, you can also receive international remittances directly into your MoMo wallet. Cross-border fees range from 2-5% depending on the corridor.

Airtel Money Transfers

Airtel Money supports cross-border transfers within its East African network (Kenya, Uganda, Tanzania, Malawi, Rwanda). Fees are typically 2-4% of the amount, positioning Airtel as the budget option for cross-border as well.

Cross-border mobile money remains one of the areas where the African Continental Free Trade Area (AfCFTA) can have the most impact. Reducing these fees would put more money in the hands of small traders and families who rely on cross-border transfers.

Mobile Money Taxes by Country

Several African governments have introduced taxes specifically targeting mobile money transactions. These taxes are controversial — they generate revenue but also risk excluding the financially vulnerable people these platforms serve.

• Uganda — 0.5% levy on mobile money withdrawals (reduced from the original 1% introduced in 2018 after widespread backlash)
• Tanzania — Tiered levy on transfers: TZS 10-10,000 per transaction depending on the amount
• Cameroon — 0.2% tax on mobile money transfers
• Côte d'Ivoire — Tax on mobile money withdrawals ranging from XOF 2 to XOF 200
• Congo-Brazzaville — 1% tax on electronic money transfers
• Kenya — Removed excise duty on money transfer services in 2023, making it cheaper for users
• Ghana — E-levy of 1% on electronic transfers above GHS 100 (reduced from 1.5% after public outcry)

These taxes are in addition to the platform's own fees. In Uganda, for example, a user withdrawing UGX 500,000 pays both MTN's withdrawal fee (UGX 2,500-3,900) and the government's 0.5% levy (UGX 2,500), nearly doubling the cost.

Merchant Payments and Bill Payments

Paying merchants via mobile money is typically free or low-cost for consumers, with the merchant absorbing the fee. Here is how the platforms compare:

The push toward zero-fee merchant payments has been a deliberate strategy to build the mobile money ecosystem. By making it free for consumers to pay merchants, platforms encourage cashless transactions, which generates revenue through float (the interest earned on money held in the system) and merchant commissions.

Savings and Lending Products

All three major platforms now offer savings and micro-lending products that compete with traditional banks:

• M-Shwari (M-Pesa Kenya) — Savings account earning 6-7% per year, instant loans up to KES 50,000 with interest of 7.35% per 30-day loan term
• MTN MoMo Savings (Ghana) — MoMo Flex savings and GoalSave products, with interest rates of 8-10% per year, competitive with bank savings rates
• Airtel Money Savings (Uganda) — Wewole loan product offering instant loans based on transaction history, with interest rates of 9-12% per month for micro-loans

While these products have expanded financial inclusion, the lending rates are high compared to traditional bank loans. A 7.35% monthly rate on M-Shwari translates to an effective annual rate of over 100%. Users should treat these as emergency facilities, not ongoing credit lines.

How to Minimize Your Mobile Money Costs

1. Send to same-network contacts when possible. On-net P2P transfers are free on most platforms. If your recipient is on a different network, ask if they have a wallet on your network too.
2. Withdraw larger amounts less often. Fixed minimum fees mean five small withdrawals cost more than one large withdrawal. Plan your cash needs to consolidate.
3. Use merchant payments instead of cash. Paying merchants directly from your wallet avoids withdrawal fees entirely. More African businesses accept mobile money every year.
4. Compare platforms in your market. In Kenya and Uganda where M-Pesa, MTN MoMo, and Airtel Money all compete, Airtel consistently offers the lowest withdrawal fees. Use the cheaper platform for high-fee transactions.
5. Check for promotions. Platforms regularly offer zero-fee promotions on specific transaction types, especially during holidays and product launches.
6. Use the AfroTools Currency Converter before cross-border transfers to check if the mobile money exchange rate is competitive with alternatives.

The Future of Mobile Money in Africa

Several trends are reshaping the mobile money landscape in Africa:

• Interoperability — National switches (like Tanzania's and Ghana's) now enable seamless transfers between different mobile money platforms and bank accounts, reducing the cost of off-net transactions.
• Super app ambitions — M-Pesa and MTN MoMo are evolving into comprehensive financial platforms offering savings, lending, insurance, investment, and e-commerce features.
• Regulatory convergence — Central banks across Africa are developing common frameworks for mobile money regulation, which should reduce compliance costs and eventually lower fees for users.
• AfCFTA payment integration — The Pan-African Payment and Settlement System (PAPSS) aims to enable instant, low-cost cross-border payments across the continent, which would transform the economics of cross-border mobile money.