M-Pesa Till vs Paybill: which one should your business use?
ShelfWise ·
Every business in Kenya that takes M-Pesa ends up asking: should I get a Till number or a Paybill? Both put customer payments into your business account. The difference is how the customer pays and how much you know about each payment.
The short answer
| Till (Buy Goods) | Paybill | |
|---|---|---|
| How the customer pays | Lipa na M-Pesa → Buy Goods → Till number → amount | Lipa na M-Pesa → Paybill → business number → account number → amount |
| Best for | Paying at the counter: shops, restaurants, salons, bars | Paying from anywhere for a specific bill: invoices, school fees, subscriptions, rent |
| Telling payments apart | By amount, time and phone number | The account number says what the payment is for |
| Mistakes by customers | Fewer: one number to type | More: they can type the wrong account |
| Branches | A Till per counter or branch, under one store number | One Paybill; use account numbers per branch or customer |
Most shops, restaurants, bars and salons are best served by a Till. Choose a Paybill when customers pay you from home for something specific and you need to know exactly what each payment was for.
How a Till works
A Till is made for paying at the counter. The customer types one number and the amount. With a Till, Safaricom also gives you a store number (the head office number). It matters when you connect a POS, because Daraja uses the store number for setup and the Till number for payments.
How a Paybill works
A Paybill asks the customer for an account number as well. You decide what that means: an invoice number, a customer's name, a house number. It's what schools, landlords and utilities use, because every payment arrives labelled.
Charges and getting one
Safaricom sets the charges for each, and who pays them (you or the customer) can differ between Till and Paybill. Requirements to apply also change from time to time. Check Safaricom's current tariffs and requirements before you decide, and ask whether you can have the money settled to your bank account.
Does it matter for a POS?
Not much. A POS connected through Daraja can send the customer a payment prompt and receive payments made to either a Till or a Paybill. With a prompt from the till, the customer doesn't type any number at all, so the Till-or-Paybill question matters less at the counter. See how to connect your Till or Paybill.
Common questions
Is a Till or Paybill better for a small shop?
Usually a Till: customers pay at the counter with one number, and there are fewer mistakes. A Paybill suits payments for specific bills made from anywhere.
Can I have both a Till and a Paybill?
Yes. Some businesses use a Till at the counter and a Paybill for invoices or deliveries. A POS can usually connect one number per shop or branch.
Which number do I use for Daraja with a Till?
The store number (head office number) for Go Live and the passkey, and the Till number for payments.
Read next
- How to connect your M-Pesa Till or Paybill to a POS (Daraja, step by step)Connect your own M-Pesa Till or Paybill to your POS through Safaricom's Daraja API: Go Live, the passkey, testing with KSh 1, and fixing common errors.Read
- How to choose the best POS system for a small business in KenyaA checklist for choosing a POS in Kenya: M-Pesa matching, offline sales, stock control, phone or computer, Kiswahili, support, price and questions to ask every vendor.Read