Paybill vs Till Number: Which Should Your Business Use Online?

When setting up M-Pesa for your business, one of the first choices is between a Paybill and a Till number. Both let customers pay you through Lipa na M-Pesa, but they work differently, especially when it comes to tracking who paid for what. The right choice depends on how you sell.

What is a Till number?

A Till number is used for Lipa na M-Pesa Buy Goods and Services. The customer selects Buy Goods, enters the Till number and amount, and confirms with their PIN. There is no account number field. Tills are common in shops, supermarkets, restaurants, salons and any business where customers pay on the spot.

What is a Paybill?

A Paybill is used for Lipa na M-Pesa Pay Bill. The customer enters the business number, an account number and the amount. The account number can be anything the business defines, such as an invoice number, student admission number, house number or order reference. That makes Paybills ideal when each payment must be matched to a specific customer or transaction.

How do Paybill and Till compare?

Factor	Till (Buy Goods)	Paybill
Account reference	None	Yes, defined by your business
Typical use	Over-the-counter payments	Invoices, fees, rent, subscriptions, online orders
Matching payments	By amount, time and phone number	By account reference, much easier
Customer steps	Fewer	One extra field
Online integration	Supported via Daraja	Supported via Daraja

Which is better for online payments?

With STK Push, the difference matters less for the customer, because they only enter their PIN either way and your system attaches the reference automatically. The difference matters when customers pay outside your checkout, for example from the M-Pesa menu after receiving an invoice. With a Paybill, they enter the invoice number and your system matches it instantly. With a Till, your system must match by amount, time and phone number, which is less reliable when many people pay similar amounts.

When should you choose a Till?

• Most payments happen in person, at the counter.
• You want the simplest experience for walk-in customers.
• Payments do not need to be matched to specific accounts or invoices.

When should you choose a Paybill?

• You send invoices or statements and need to know which one was paid.
• You collect school fees, rent, service charges or membership contributions.
• Customers pay in instalments against one account.
• You run an online store or booking system where customers sometimes pay outside the checkout.

Can a business have both?

Yes. Many businesses use a Till for counter sales and a Paybill for invoices and online orders. Your systems can receive confirmations from both and reconcile them in one dashboard.

How do you integrate a Paybill or Till with your website?

Through Safaricom's Daraja API, your website can send STK Push requests, receive automatic payment confirmations (C2B) and query transaction status. Payments then update orders, invoices or accounts automatically. Read our guide on integrating M-Pesa into your website for the full process.

How should you design Paybill account references?

If you choose a Paybill, the account reference format matters. Use something customers already have and can type easily, such as an invoice number, a student admission number or a house number. Keep it short, avoid characters that are easy to confuse such as O and 0, and print it clearly on every invoice, statement and receipt. Your system can then validate references as they arrive and flag any that do not exist.

Common mistakes to avoid

• Using a personal M-Pesa number for business payments, which mixes finances and limits integration.
• Choosing a Till when you need account references for invoices.
• Not telling customers which account number to use with a Paybill.
• Reconciling payments manually when automatic confirmations are available.

Example: a property manager's setup

A property manager collects rent from several buildings. A Paybill with each tenant's house number as the account reference lets tenants pay from the M-Pesa menu in their own time. Every payment is confirmed automatically and credited to the right unit, and tenants can see their balance in a portal. The manager's office still uses a Till for small walk-in payments such as key replacements.

Get your M-Pesa setup right

Our M-Pesa integration team connects Paybills and Tills to your website, portal or system with automatic reconciliation. See also STK Push explained.