The verdict in three sentences
In Kenya, M-Pesa via the Daraja API (STK Push) collects at 0 % to 1.5 %, settles to your Till or Paybill same-day to T+1, and confirms payment via a mandatory callback URL. Standard limits are KES 250,000 per transaction and KES 500,000 per day, raised via enhanced KYC if your volume requires it. Compared with a card POS (2.5 to 3 % plus a monthly fee), Daraja protects an SME's margin far better.
M-Pesa Daraja vs card POS
The true cost of a payment method combines commission, subscription and time-to-funds.
| Criterion | M-Pesa Daraja | Card POS |
|---|---|---|
| Fee per transaction | 0 % to 1.5 % | 2.5 % to 3 % |
| Monthly subscription | 0 | ~KES 2,500 |
| Settlement | Same-day to T+1 | T+2 to T+5 |
| QR / Till number | Free | N/A |
| Confirmation | Callback < 5 s | Terminal receipt |
| Per-transaction limit | KES 250,000 | Per bank |
Monthly cost by volume
Projected total cost (commission + subscription) over one month, as a 2026 order of magnitude.
| Monthly volume | M-Pesa (1 %) | Card POS (2.75 % + 2,500) |
|---|---|---|
| KES 500,000 | 5,000 | 16,250 |
| KES 1,000,000 | 10,000 | 30,000 |
| KES 3,000,000 | 30,000 | 85,000 |
| KES 5,000,000 | 50,000 | 140,000 |
| KES 10,000,000 | 100,000 | 277,500 |
Mini case study
Fatou, who runs a premium hair salon in Nairobi, collects KES 3,000,000/month. With a card POS at 2.75 % plus a KES 2,500 subscription, she pays KES 85,000/month. Switching to M-Pesa Daraja at 1 %, her bill drops to KES 30,000/month — a KES 55,000 monthly saving and KES 660,000/year. Same-day settlement also removes her weekend cash-flow squeeze.
FAQ
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Is M-Pesa settlement really same-day?
For Till/Paybill it is often same-day to T+1, faster than most card acquirers which settle T+2 to T+5.
Does the KES 250,000 limit block large tickets?
It is the standard per-transaction limit; the daily cap is KES 500,000. Enhanced KYC raises both, usually within a few working days.
Is a Till number suitable for in-store?
Yes, it is free and ideal for a shop: the customer pays via STK Push and the callback confirms in under 5 seconds at the till.
Should I keep a card POS as backup?
Only useful for international cardholders. For local customers, M-Pesa covers almost all needs.
Is the callback reliable?
Yes, with typical latency under 5 seconds. Still, add a fallback polling every 5 seconds in case a callback is missed.
Let's talk about your project. We integrate M-Pesa Daraja with STK Push and callbacks for collection at 1 %. 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.