M-Pesa Till vs Paybill: Which Earns You More Trust From Customers?

Most Kenyan business owners face this choice without realizing what they're choosing: when customers pay you via M-Pesa Till, they pay zero fees. When they pay via Paybill, they often pay between KES 7 and KES 108 on top of the amount they owe you. That single difference shapes everything—from how many customers come back to whether you're seen as a business that respects their wallet.

Let's be clear about what each one is. A Lipa na M-Pesa till number is how customers pay your business directly from their M-Pesa — the till is the merchant's collection number (5–7 digits). The customer chooses Lipa na M-Pesa → Buy Goods and Services, enters your Till number and the amount, best for shops, retail and restaurants - an instant payment for a sale.

With Paybill, the customer chooses Lipa na M-Pesa → Pay Bill, enters your Paybill number, an account number (their name, invoice or unit) and the amount, best for bills, rent, school fees, SACCOs and collections - where you need to know who paid for what.

The fee structure: where customer trust gets tested

Here's why this matters to your customers. Paying a Buy Goods Till costs the customer KES 0. Safaricom waived customer Buy Goods fees in 2018 and that still holds in 2026. They literally pay nothing.

A Paybill is different. It depends on the tariff the business chose. The most common setup - utilities, schools, landlords - passes the fee to the customer. On a Paybill using the Business Bouquet model—the most common for SMEs—customers pay KES 5 on amounts between KES 101–500, KES 13 on KES 501–1,000, and the charges rise to KES 108 for amounts above KES 20,001.

Work that out. If someone buys goods worth KES 5,000 from your shop via Till, they're happy—they paid exactly KES 5,000. Send them an invoice for KES 5,000 via Paybill and they pay KES 5,057 (KES 57 in Paybill fees). That costs you a customer.

Who should use what

M-PESA Till Number (Buy Goods) is better for most Kenyan retail businesses because customers don't need a Paybill number — they just scan or enter your Till. Use a Till if you run a shop, salon, restaurant, kiosk, or any business where customers walk in and hand over money on the spot.

Paybill is better for B2B, invoices, and businesses where customers need to include an account number. Use Paybill if you're a landlord collecting rent, a school collecting fees, or a utility managing many different accounts. You need that reference field. The customer already knows they'll pay a small fee because it's how rent works in Kenya.

But here's the trap many small businesses fall into: they get a Paybill thinking it's more formal or professional, then watch customers complain about the fees or simply stop paying. Business setup experts on Kaziiko will tell you the same thing—Till is the faster path for most SMEs.

The real cost to you

You won't pay nothing either way. The merchant pays Safaricom a fee of 0.5% of the transaction amount, capped at KES 200. On a KES 10,000 payment, the merchant pays KES 50. On a KES 100,000 payment, the merchant pays KES 200 (the cap kicks in).

Paybill fee is negotiated with Safaricom — typically 1-1.5% for SMEs, down to 0.2-0.4% for high-volume corporates (KPLC, Nairobi Water, major schools). The more you process, the better your rate. But most small businesses never negotiate—they take the default. And even then, your merchant fee is lower than what the customer pays on a Paybill.

Trust and why it matters

A business that chooses Till over Paybill sends a message: "I designed this for you, not for me." Your customer pays zero. You eat the small merchant fee. That's the gesture that gets repeated.

Growth-stage businesses often run both. A business with both face-to-face retail and invoiced services can use both. Till for walk-ins, Paybill for invoices. Two rails, two ledgers, cleaner records.

The till doesn't have a daily limit that matters to your customers anymore either. Till has a KES 300,000 daily limit; Paybill has no limit. For most kiosks, salons, shops and restaurants, KES 300,000 is months of revenue. If you're hitting that every day, you're already big enough to negotiate.

Frequently Asked Questions

Does it cost customers anything to pay a Till?

Paying a Buy Goods Till costs the customer KES 0. Safaricom waived customer Buy Goods fees in 2018 and that still holds in 2026. The merchant pays a small fee to Safaricom, not the customer.

What's the difference between Till and Paybill for customers?

The one thing your customers notice most is who pays the charge. Till (Buy Goods) costs the customer nothing. Paybill charges the customer, depending on the tariff your business selected. If you use Paybill Business Bouquet (the default), customers pay fees ranging from KES 7 to KES 108.

Which one should I choose for my business?

Choose Till if you run a retail business, salon, restaurant, or any shop where customers pay at the counter. Choose Paybill if you're billing many customers for different things—landlord collecting rent from different units, school collecting fees with student names as reference, or utility company. If you do both, register both and use each for its purpose.

Do both cost money to set up?

Both are free to register at Safaricom shops. No setup fee, no monthly fee. The cost is only in transaction fees after you start receiving money.