The verdict in three sentences
A Till Number (Buy Goods) is cheaper for retail because it charges roughly 0.55 % capped, while a Paybill charges in bands that can reach KES 105 per transaction. The right choice depends on your average ticket and whether you need reference numbers for reconciliation. Below a certain ticket, Till wins on cost; above it, and where you need invoicing, Paybill earns its higher fee.
Breaking down net received on M-Pesa
2026 order of magnitude for merchant collection in Nairobi; exact rates depend on your Safaricom tariff.
| Cost item | Till (Buy Goods) | Paybill |
|---|---|---|
| Merchant fee | ~0.55 % capped | banded, up to KES 105 |
| Customer transaction cost | free to customer | free to customer |
| Settlement to bank | daily/T+1 | daily/T+1 |
| Reference / invoice number | no | yes |
| Net on KES 2,500 sale | ~KES 2,486 | ~KES 2,477 |
On a KES 2,500 sale, Till keeps about KES 2,486 while Paybill (band fee ~KES 23) keeps about KES 2,477. That KES 9 gap per sale compounds fast at retail volume.
Cost by ticket size and band
| Sale amount | Till fee (~0.55 %) | Paybill band fee | Gap |
|---|---|---|---|
| 500 | 3 | 12 | 9 |
| 1,500 | 8 | 23 | 15 |
| 2,500 | 14 | 23 | 9 |
| 5,000 | 28 | 34 | 6 |
| 20,000 | 110 (near cap) | 55 | -55 |
Below ~KES 15,000 the Till is cheaper; above it the capped Till fee and the Paybill band converge, and for very high tickets Paybill can even win. On 300 sales of KES 2,500 (KES 750,000 volume), Till costs about KES 4,200 vs Paybill KES 6,900: a KES 2,700/month gap, over KES 32,000 a year.
Mini case study
Njeri, who runs a bakery in Nairobi, collects 300 sales a month at KES 2,500, KES 750,000 volume. On a Paybill she pays banded fees averaging KES 23, about KES 6,900/month. Switching retail collection to a Till (Buy Goods) at ~0.55 % capped, her fees drop to about KES 4,200/month, while she keeps a small Paybill only for corporate invoices needing references. Saving: KES 2,700 a month, over KES 32,000 a year.
FAQ
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Why is my net lower than the headline rate?
Because the merchant fee is only part of it. Band structure, settlement timing and whether you use Till or Paybill change the real net by KES 9–55 per sale.
When should I use a Till instead of a Paybill?
For walk-in retail with tickets under ~KES 15,000 and no need for reference numbers, a Till at ~0.55 % capped is cheaper. Paybill pays off when you need invoicing.
Is the Till fee really capped?
Yes, above a threshold the Buy Goods fee stops rising, so high tickets pay a flat amount. That cap is why Till suits mixed baskets.
How much does KES 1,000,000 collected really cost?
Between about KES 5,500 (Till near cap) and KES 20,000+ (Paybill across many small bands). The spread is your optimisation room.
At what volume does the choice matter?
From KES 500,000/month, the Till vs Paybill gap tops KES 2,700/month, over KES 32,000 a year. Above that, structure both deliberately.
Let's talk about your project. We model your real net received on M-Pesa and optimise your Till/Paybill mix. 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.