M-Pesa, Kenya’s leading mobile money platform operated by Safaricom, offers businesses and individuals several ways to receive payments. Two of the most popular options are Till Number (Buy Goods and Services) and Paybill Number. While both allow customers to make payments directly from their phones, they serve different purposes and offer distinct features.
In this article, we explore the key differences between M-Pesa Till Number and Paybill, helping you choose the right option for your business.
1. Purpose and Usage
Till Number (Buy Goods and Services)
- Designed for retail and informal businesses like shops, kiosks, salons, restaurants, and boda boda operators.
- Used for everyday transactions, especially over-the-counter payments.
- Customers pay using the Lipa na M-Pesa > Buy Goods and Services option.
Paybill Number
- Meant for formal or service-based businesses, such as schools, hospitals, utilities, and financial institutions.
- Ideal for bill payments, subscriptions, or donations.
- Customers pay using the Lipa na M-Pesa > Paybill option and are required to enter a business number and account number (e.g., student name, invoice number, etc.).
2. Customer Experience
| Feature | Till Number | Paybill Number |
|---|---|---|
| Payment Path | Buy Goods and Services | Paybill |
| Account Number Required | ❌ No | ✅ Yes (e.g., student ID, invoice) |
| Simplicity | ✅ Simple and quick | ⚠️ Requires more input |
3. Settlement and Access to Funds
Till Number
- Offers the option for Real-Time Settlement into the business’s M-Pesa wallet.
- Some Tills (especially Pochi la Biashara) allow immediate access to funds on the same phone.
- Useful for businesses that need instant access to cash for daily operations.
Paybill Number
- Funds are typically deposited into a designated bank account or Safaricom M-Pesa account.
- Supports bulk reconciliation for organizations that handle many payments daily.
- Not ideal for instant withdrawals unless linked with an M-Pesa line.
4. Reporting and Reconciliation
- Paybill offers more detailed reports, including payer details and account numbers, making it easier to track payments against accounts or invoices.
- Till Number offers basic reports and is better suited to straightforward, low-volume transactions.
5. Cost and Setup
| Feature | Till Number | Paybill Number |
|---|---|---|
| Setup Cost | Usually free or minimal | Can include application fees |
| Application Process | Quick and mostly online/self-service | May involve documentation and vetting |
| Transaction Fees | Lower for most low-value payments | Varies depending on volume and setup |
6. Branding and Professionalism
- Paybill gives a more formal, branded image, making it ideal for institutions and larger businesses.
- Till Number is associated with retail convenience and is preferred for in-person sales.
7. Examples of Use
| Scenario | Ideal Option |
|---|---|
| A hardware shop receiving daily cash payments | Till Number |
| A university collecting school fees | Paybill |
| A freelance designer requesting client payments | Paybill (with account number for reference) |
| A mama mboga selling groceries | Till Number (or Pochi la Biashara) |
Conclusion: Which Should You Choose?
The choice between a Till Number and Paybill depends on your business model, type of customer interaction, and cash flow needs:
- Choose a Till Number if you run a retail or in-person business and need quick access to funds.
- Choose a Paybill Number if your business handles structured payments, needs reconciliation, or if you want to collect payments remotely or digitally with reference information.
Both tools are powerful, and in some cases, businesses benefit from using both, depending on the situation.
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