The verdict in three sentences
In Kenya, M-Pesa dominates so completely that the real question is not "which operator" but "which merchant account type". Till (Buy Goods) is built for retail sales and is free to the customer, while Paybill is designed for bills, subscriptions and account references. Picking the wrong one raises your effective costs and confuses customers, so the 2026 rule is: Till for goods, Paybill for bills, and Lipa Na M-Pesa online for e-commerce checkout.
Till vs Paybill: same M-Pesa, different logic
Both run on Safaricom's M-Pesa, but they serve different flows. A Till has a short number and is optimized for a shopkeeper scanning or reading a code; a Paybill uses a business number plus an account reference, ideal for invoices and recurring bills.
| Account type | Fee | Use case | Limit | Activation delay | API integration |
|---|---|---|---|---|---|
| Till (Buy Goods) | 0% to customer, merchant tariff | Retail, shops, food | Up to KES 500,000/txn | 1 to 3 days | Yes (Daraja) |
| Paybill | Merchant tariff | Bills, subscriptions, rent | Up to KES 500,000/txn | 3 to 7 days | Yes (Daraja) |
| Lipa Na M-Pesa Online (STK) | Merchant tariff | E-commerce checkout | Up to KES 500,000/txn | Linked to Till/Paybill | Yes (Daraja STK Push) |
| Pochi La Biashara | Standard | Micro-sellers, informal | Lower | Immediate | No |
These are 2026 orders of magnitude; exact merchant tariffs depend on your Safaricom agreement and monthly volume.
Settlement, coverage and integration
The practical difference is settlement and reconciliation. Paybill's account reference makes it far easier to match a payment to a specific invoice or subscriber, which matters for SaaS and utilities. Till is simpler and faster for point-of-sale and food.
| Criterion | Till (Buy Goods) | Paybill |
|---|---|---|
| Best for | Physical/online goods | Bills, recurring, references |
| Reconciliation | Basic | Strong (account no.) |
| Customer effort | Very low | Enter account ref |
| Settlement | To business account | To business account |
| STK Push checkout | Yes | Yes |
For an online store, integrate Lipa Na M-Pesa Online (STK Push via the Daraja API) on top of a Till so customers approve payment directly on their phone.
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Mini case study
Grace, who runs an online homeware store in Nairobi, targets KES 1,500,000 in monthly online sales. She wrongly set up a Paybill and asks customers to type an account number at checkout, causing drop-off.
Switching to a Till with STK Push removes the manual reference: the customer just approves a prompt. If drop-off falls from 25% to 10%, she recovers roughly KES 225,000 of monthly sales. Even at merchant tariff, the recovered revenue dwarfs the fee difference.
FAQ
Till or Paybill for a shop? Till (Buy Goods) for selling goods, physical or online. Paybill is better for bills, rent, subscriptions and anything needing an account reference.
Is Buy Goods really free for the customer? For the buyer, Buy Goods is typically free; the merchant pays a tariff on collection. Always confirm the current 2026 merchant rate with Safaricom.
How do I take M-Pesa online? Use Lipa Na M-Pesa Online (STK Push) through the Daraja API, linked to your Till or Paybill, so customers approve payment on their phone.
How long to activate? Roughly 1 to 3 days for a Till and 3 to 7 days for a Paybill, with business registration documents.
Can I reconcile payments to invoices? Paybill's account reference is best for that. For pure retail, Till plus your order ID in the STK callback is enough.
Let's talk about your project. We set up your M-Pesa Till or Paybill and wire Daraja STK Push into your Kenyan store. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
