Lipa na M-Pesa comes in two forms: Paybill, used for bills and account-based payments where you enter an account number, and Buy Goods (Till), used at shops where you only enter the till. Buy Goods is typically free to the customer while the merchant pays, and Paybill charges depend on the biller. Confirm the current tariff on the prompt before you pay.
The practical difference is the account number. Paybill is for billers who need to know which account the money is for, such as a utility, a landlord or the tax authority, so you enter the business number and then your account or reference. Buy Goods is for shops and restaurants where the till number alone identifies the merchant and there is nothing else to reference.
Cost usually follows that split. Buy Goods is typically free to the customer because the merchant pays the charge, while Paybill fees depend on the biller arrangement. The confirmation prompt shows the cost for that specific payment, which is the figure to trust because Safaricom revises the Lipa na M-Pesa tariff from time to time.
KRA, the Social Health Authority, county water companies and similar billers each have an official Paybill. The single most important safety step is to take the Paybill number from the institution own communication, letter or app, not from a forwarded message, because fake Paybill numbers are a common scam. The amount and your reference must match what the biller expects or the payment can post to the wrong account.
For small traders, Pochi la Biashara is worth knowing about. It is a dedicated wallet that separates business takings from personal M-Pesa, which makes record-keeping cleaner and reduces the chance of spending float by mistake. It sits alongside Paybill and Till rather than replacing them.
Mistyped Paybill payments happen, and a reversal is sometimes possible by reporting promptly to Safaricom with the transaction details. As with any M-Pesa reversal, success depends on the money still being recoverable, so speed matters. The transaction message is the record every support process starts from.
To find a verified Paybill quickly and avoid the wrong-number trap, the directory is the right starting point. It is the tool pillar for this hub and the place to confirm a number before you send rather than after.
Guides in this series.
Complete guide to applying for an M-Pesa Till Number (Buy Goods) for your Kenyan business in 2026. Requirements, step-by-step process, fees, settlement times and tips for sole traders and companies.
Compare Kenya's best payment gateways for e-commerce in 2026 — Pesapal, Flutterwave, DPO Pay, iPay Africa, Kopokopo and Stripe. Fees, integration effort, M-Pesa support and verdict for Kenyan businesses.
Paybill is for billers that need an account number, so you enter the business number then your reference. Buy Goods (Till) is for shops where the till number alone identifies the merchant. Buy Goods is generally free to the customer; Paybill charges vary by biller.
Sometimes. Report it to Safaricom promptly with the transaction details. Recovery depends on the money still being available, so act quickly; it is not guaranteed once the merchant withdraws.
Always take the Paybill number from the institution own letter, bill or official app rather than a forwarded message, and check the confirmation prompt shows the expected business name before approving.