The verdict in three sentences
In Nairobi, the M-Pesa merchant decision is Till Number (Buy Goods) vs Paybill, and it depends on how your business collects money. A Till is simple for retail with fees of 0 to 0.55 % by tier and T+1 settlement, while a Paybill bills by account reference and can credit closer to real time, ideal for invoices and services. Pick the wrong one and you either overpay on fees or struggle to reconcile customer payments.
Till vs Paybill: the differences
Both accept M-Pesa, but the mechanics and best-fit use cases differ:
| Criterion | Till (Buy Goods) | Paybill |
|---|---|---|
| Best for | retail, shops | invoices, services, utilities |
| Fees | 0 to 0.55 % by tier | tariff by amount |
| Customer reference | not required | account/reference required |
| Settlement | T+1 | can be near real time |
| Reconciliation | by till | by reference/account |
| Setup complexity | simpler | more involved |
A retailer with walk-in and online sales usually wants a Till for its simplicity. A business that invoices customers and needs to match each payment to an account benefits from a Paybill's reference system.
Fees and reconciliation in 2026
The numbers to size your setup:
| Parameter | 2026 ballpark value |
|---|---|
| Till fee | 0 to 0.55 % by tier |
| Paybill fee | tariff by amount |
| Till settlement | T+1 |
| Paybill settlement | near real time possible |
| Callback delay | seconds |
| Reconciliation key | till vs reference |
Reconciliation is the hidden cost. With a Till, all payments land together and you match by time and amount. With a Paybill, each payment carries a reference that maps to a customer account, which is far cleaner for services and subscriptions.
Mini case study
Wanjiru runs a furniture business in Nairobi with a high average basket of KES 60,000. She handles 40 orders per month, roughly KES 2,400,000. As a retailer she starts with a Till for its simplicity and low tiered fees, but as she adds installment invoicing she finds reconciliation painful without references. Switching key invoice flows to a Paybill, each payment maps to a customer account automatically, saving her an estimated 20 hours a month of manual matching while keeping the Till for quick retail sales.
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FAQ
What is the difference between Till and Paybill?
A Till (Buy Goods) suits retail and shops with simple collection, while a Paybill suits invoices and services because it uses a customer reference. The choice depends on how you need to reconcile payments.
Which is cheaper in 2026?
Till fees run 0 to 0.55 % by tier, while Paybill uses a tariff by amount. Model both against your average transaction to see which is cheaper for your volumes.
When do I get settled?
Till settlement is generally T+1, while a Paybill can credit closer to real time. If cash-flow timing matters, factor this into your choice.
Which is better for reconciliation?
Paybill wins for reconciliation because each payment carries a reference mapping to a customer account. A Till lands payments together, so you match by time and amount.
Can I use both?
Yes, many businesses run a Till for quick retail and a Paybill for invoiced flows. This hybrid keeps retail simple while making service payments easy to reconcile.
Let's talk about your project. We set up the right M-Pesa Till or Paybill and wire clean reconciliation into your 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.
