M-Pesa Till vs. Paybill

You’re launching your new business in Kenya. You’ve got your product, your location, and your first customers. Now, you need a way to get paid, and that means “Lipa na M-Pesa.”

But then you hit a wall of confusion: Should you get a Till Number or a Paybill Number?

They sound the same, but choosing the wrong one can cause a headache for you and your customers. As your business partner, PesaSmart is here to make the choice simple.

Here’s the simple difference:

• A Till Number is like a cash register. It’s for simple, in-person payments.

• A Paybill Number is like an invoice system. It’s for structured payments where you must track who paid.

Let’s break it down.

Deep Dive 1: The “Lipa na M-Pesa” Till Number (Buy Goods)

This is the most common option you see at shops, cafes, and kiosks.

• What it is: A simple way to collect “Buy Goods” payments.

• Best For: Any business that deals with customers face-to-face.

  • Retail shops and supermarkets

  • Restaurants, cafes, and food stalls

  • Salons, barbershops, and Kinyozis

  • Taxis, Boda Bodas, and Matatus

• How it Works (for the Customer):

  1. Go to M-Pesa $\rightarrow$ “Lipa na M-Pesa” $\rightarrow$ “Buy Goods and Services.”

  2. Enter the 6-digit Till Number.

  3. Enter the amount.

  4. Enter PIN. (No “Account Number” is needed!)

• Key Feature: It’s fast and simple. The customer doesn’t need to enter anything except the Till and the amount. The money lands in your M-Pesa Business wallet.

• Cost: This is a big one. For the customer, it’s often FREE to pay (except at fuel stations). The business owner (you) pays a small fee (e.g., 0.55% of the transaction) to receive the money.

PesaSmart Tip: There is also a “Pochi la Biashara” Till. This is a simpler version for small, informal businesses (like mama mbogas). It’s tied to your personal M-Pesa line and the funds are not separate. A proper Business Till is better for a formal, registered business.

Deep Dive 2: The M-Pesa Paybill Number

This is the professional choice for collecting structured payments, especially bills.

• What it is: A payment system for billing and collection.

• Best For: Businesses that need to match a payment to a specific customer or invoice.

  • Schools (collecting fees)

  • Landlords (collecting rent)

  • Utility companies (KPLC, Nairobi Water)

  • Churches and non-profits (collecting donations)

  • E-commerce websites (matching an order number)

• How it Works (for the Customer):

  1. Go to M-Pesa $\rightarrow$ “Lipa na M-Pesa” $\rightarrow$ “Pay Bill.”

  2. Enter the 5 or 6-digit Business Number (the Paybill).

  3. Enter the Account Number (this is the key!).

  4. Enter the amount.

  5. Enter PIN.

• Key Feature: The “Account Number” is mandatory. This is why you use a Paybill. It’s how you know which tenant paid rent (their house number) or which student paid fees (their student ID).

• Cost: This is flexible. You can set up your Paybill so that the customer pays the transaction fee, or you (the business) can “absorb” the cost.

At-a-Glance: Till vs. Paybill

Which One Do You Need?

To find your answer, ask yourself this one question: “Do I need to know who is paying me without having to ask them?”

• If the answer is NO: You just need the money. You run a coffee shop, and the customer is right in front of you. You need a Till Number.

• If the answer is YES: You are a landlord. You need to know that the 50,000 KSh payment came from “Apartment 4B” and not “Apartment 2A.” You need a Paybill Number.

Can you have both? Absolutely! Many businesses do. They use a Till Number for in-store purchases and a Paybill Number on their invoices for clients who are paying later.

Choose the right tool, and make getting paid the easiest part of your business.