The verdict in three sentences
In Kenya, M-Pesa is the non-negotiable foundation: it holds roughly 96 % of mobile money volume and its fast T+1 settlement protects your cash flow. Airtel Money is only ~4 % of volume, but those customers are often captive and will abandon if you only offer M-Pesa. The right call isn't to choose, it's to add Airtel as a backup to recover conversion you're leaking today.
Fees and settlement: the numbers
On M-Pesa, two merchant rails coexist: the Till Number (Buy Goods, for retail) and Paybill (billing, e-commerce, services). Merchant fees vary with negotiated volume and account type. Airtel Money sits slightly lower on paper, but its low Kenyan volume limits its negotiating leverage.
| Criterion | M-Pesa | Airtel Money |
|---|---|---|
| Volume share (est. 2026) | ~96 % | ~4 % |
| Paybill / collection fee | 0 - 1.5 % | 1 - 1.5 % |
| Till (Buy Goods) fee | 0 - 0.5 % | n/a |
| Settlement | T+1 | T+1 to T+2 |
| Per-transaction cap | 500,000 KES | 150,000 KES |
| Daily wallet cap | 500,000 KES | 300,000 KES |
| API | Daraja (STK Push) | Airtel Africa REST |
The 500,000 KES per-transaction cap on M-Pesa covers the vast majority of e-commerce baskets. For high-ticket B2B, split the payment or move to bank transfer.
Why multi-operator still pays
At first glance, integrating Airtel for 4 % of the market seems marginal. But those 4 % concentrate in specific regions and profiles, and an Airtel customer who can't find their operator at checkout won't go create an M-Pesa account to finish their order: they abandon. Recovering even half of these customers directly improves overall conversion.
| Checkout scenario | Payer coverage | Relative conversion |
|---|---|---|
| M-Pesa only | ~96 % | baseline |
| M-Pesa + Airtel | ~99.5 % | +3 to 4 points |
| M-Pesa + Airtel + card | ~100 % | +5 points (int'l incl.) |
Adding cards (Visa/Mastercard) also captures the diaspora and international customers, often high-basket.
Mini case study
Brian runs an online electronics shop in Nairobi. Monthly volume: 8,000,000 KES, 100 % via M-Pesa Paybill. He estimates losing 3 % of checkout sessions for lack of an Airtel option, about 240,000 KES of missed orders per month. Adding Airtel Money he recovers two thirds, or 160,000 KES/month in additional revenue. Cost: Airtel fees at 1.3 % on that volume = 2,080 KES/month. The gain-to-cost ratio is 77 to 1: the integration is a no-brainer.
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FAQ
M-Pesa Till or Paybill for e-commerce?
Paybill fits online billing and automatic reconciliation via the Daraja API better. Till (Buy Goods) suits physical retail and quick payment without an invoice reference.
Is M-Pesa settlement really T+1?
Yes, the payout to your bank account usually lands the next business day. Airtel ranges between T+1 and T+2 depending on the bank and aggregator.
Is it worth integrating Airtel for 4 % of the market?
Yes, because those customers otherwise abandon their cart. Integration cost is marginal and the conversion gain shows up in the first month, as Brian's case demonstrates.
Which caps should I know?
M-Pesa caps at 500,000 KES per transaction and per day for a standard wallet in 2026. Airtel caps lower, around 150,000 KES per transaction.
Can merchant fees be negotiated?
Yes, above a certain monthly volume Paybill fees come down. M-Pesa offers the most leverage given its dominance of the Kenyan market.
Let's talk about your project. We wire up M-Pesa Daraja and Airtel Money on your store, with automatic reconciliation. 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.
