M-Pesa Deep Dive 🇰🇪
A comprehensive guide to understanding M-Pesa payment methods in Kenya, including Till numbers, PayBill numbers, Pochi la Biashara, and when to use each payment type.
Why a Store Uses Each Payment Method
1. Till (Buy Goods) 🏪
Best for: In-person retail (shop, bar, restaurant)
Why stores use it:
- ✅ Fastest checkout experience
- ✅ Usually simplest for customers (no account/reference needed)
Downside:
- ⚠️ Reconciliation can be harder if you need to match payment to an invoice/customer
- ⚠️ There's no mandatory "account number" field (it's basically "pay merchant X")
General distinctions widely described in business guides; Safaricom groups this under "Lipa na M-PESA / merchant payments".
2. PayBill 💳
Best for: Bill/invoice-style payments (rent, school fees, utilities, subscriptions, loan repayments)
Why stores use it:
- ✅ It supports an Account/Reference value (invoice number, customer ID, order ID)
- ✅ Makes reconciliation much easier
Downside:
- ⚠️ More steps for the payer (enter PayBill + account)
3. Pochi la Biashara 📱
Best for: Micro-merchants who want business payments via phone number
Why stores use it:
- ✅ Easy onboarding
- ✅ Phone-number based
- ✅ Good for informal sellers/freelancers
4. Agent Deposit / Store Deposit (Cash-In) 💰
Important: This is NOT a merchant payment product—it's a wallet top-up.
Stores use this when:
- Customer wants cash → M-Pesa (top-up), then can pay elsewhere
- Business itself doesn't have Till/PayBill (or network/POS flow is simpler)
- Staff are acting like "cash handlers" and the real transaction is just deposit to a phone number
Downside:
- ⚠️ It doesn't automatically tag the payment as "this was for invoice #123"
- ⚠️ It's just money arriving in a wallet
Payment Method Comparison
| Method | Agent Needed? | Where Money Goes |
|---|---|---|
| Buy Goods (Till) | ❌ No | Merchant Till |
| PayBill | ❌ No | Merchant PayBill |
| Send Money | ❌ No | Personal wallet |
| Agent Deposit | ✅ Yes | Wallet top-up |
How Often Each Payment Type is Used (Real-World Frequency)
This is very consistent across Kenya:
🥇 Till (Buy Goods) - Most Frequent
- Used for daily retail
- Shops, bars, supermarkets, fuel stations
- Fast, no reference needed
≈ 50–60% of in-person merchant payments
🥈 PayBill
- Used for:
- Rent
- School fees
- Utilities
- Subscriptions
- Loan repayments
≈ 25–35% of merchant payments
🥉 STK Push (Online PayBill / BuyGoods)
- Apps, websites, delivery platforms
- Often layered on top of PayBill/Till
≈ 10–15%, growing fast
🟤 Pochi la Biashara
- Small/informal merchants
- Freelancers
≈ 3–7%, niche but rising
⚪ Agent Deposit
- Not a merchant payment
- Used mainly for:
- Cash → wallet
- Remittances
- Salary cash-in
Do PayBills Require an Account Number / CSN / Name?
✅ PayBill REQUIRES an Account / Reference
This is mandatory - you cannot complete a PayBill payment without entering an account/reference number.
Important Distinction
❌ It does NOT require a name
- You enter any text or number
- Safaricom does not validate it against a name
- It's just a reference string
Common References
- Invoice number
- Student ID
- Meter number
- Phone number
- Customer number
What If You Type the Wrong Name or Reference?
🔴 M-Pesa Behavior
- ✅ Payment WILL GO THROUGH
- ✅ Money reaches the merchant PayBill
- ✅ Safaricom does not block or validate
- ⚠️ Error becomes a reconciliation issue, not a payment failure
🧠 Who Fixes It?
- The merchant, not Safaricom
- Merchant matches:
- Amount
- Time
- Phone number
- Receipt number
That's why merchants ask you to:
- Keep SMS
- Share transaction code
- Provide phone number used
❌ When Money Is Truly "Lost"
Only if:
- ❌ You paid the wrong PayBill number
- ❌ The PayBill belongs to another organization
Key distinction:
- ❌ Wrong reference ≠ lost money (merchant can reconcile)
- ❌ Wrong PayBill = serious problem (money went to wrong recipient)
Why Stores Choose Each System (Simple Rule)
| Store Need | Uses |
|---|---|
| Fast checkout | Till |
| Invoice matching | PayBill |
| Online payments | STK Push |
| Informal selling | Pochi |
| Cash handling | Agent deposit |
Transaction Confirmation & Receipts
M-Pesa provides multiple ways to confirm transactions, ensuring both senders and recipients have clear records of all payments.
SMS Confirmation (Primary Method)
For Senders (Payer):
When you send money via M-Pesa, you receive an SMS confirmation immediately. Example SMS format:
MPESA Confirmed. You sent KES 1,500.00 to JOHN DOE on 15/12/2024 at 2:30 PM.
New M-PESA balance is KES 8,500.00.
Transaction cost, KES 15.00.
Transaction ID: QHX8K9L2M3.
For Recipients:
When you receive money, you get an SMS notification:
You have received KES 1,500.00 from JANE SMITH +254712345678 on 15/12/2024 at 2:30 PM.
New M-PESA balance is KES 3,200.00.
Transaction ID: QHX8K9L2M3.
For PayBill/Till Payments:
MPESA Confirmed. KES 5,000.00 paid to MERCHANT NAME.
Account: INV-12345.
New M-PESA balance is KES 3,500.00.
Transaction ID: QHX8K9L2M3.
Key Information in SMS:
- ✅ Amount: Exact amount sent/received
- ✅ Payer/Recipient Name: Name registered with M-Pesa
- ✅ Phone Number: Sender's phone number (for recipients)
- ✅ Transaction ID: Unique identifier for tracking
- ✅ Date & Time: Exact timestamp
- ✅ New Balance: Updated wallet balance
- ✅ Transaction Cost: Fees charged (for senders)
- ✅ Account/Reference: For PayBill payments
M-Pesa App Notifications
In-App Transaction History:
- Open M-Pesa App (or dial *234#)
- Select "M-Pesa Statement" or "Transaction History"
- View detailed transaction list with:
- Transaction type (Send Money, PayBill, Till, etc.)
- Amount
- Recipient/Payer name and phone number
- Date and time
- Transaction ID
- Status (Completed, Pending, Failed)
Push Notifications:
The M-Pesa app sends push notifications for:
- Money received
- Payment confirmations
- Balance updates
- Transaction failures
Receipt Details
What Recipients See:
When receiving money via reply.cash or other services:
- SMS: Shows sender's phone number and name (if registered)
- Amount: Exact amount received
- Transaction ID: For tracking and support
- Balance: Updated wallet balance
What Merchants See (Till/PayBill):
Merchants receive notifications showing:
- Amount: Payment amount
- Payer Phone Number: Customer's M-Pesa number
- Transaction ID: For reconciliation
- Account/Reference: For PayBill payments (if provided)
- Time: Transaction timestamp
Note: Merchants typically see the payer's phone number, not always the name, which is why they may ask for transaction details for reconciliation.
Practical Use Cases
For Reconciliation:
If you enter the wrong reference number in PayBill:
- Keep the SMS receipt - Contains transaction ID, amount, time, and your phone number
- Share with merchant - They can locate the payment using:
- Transaction ID
- Amount
- Time
- Your phone number
- Merchant matches payment - They reconcile using these details
For Verification:
- Check SMS immediately after transaction
- Verify amount matches what you intended
- Save transaction ID for support if needed
- Check balance to confirm transaction completed
For Support:
If you need to contact Safaricom support:
- Provide Transaction ID from SMS
- Provide amount and time
- Provide recipient phone number (if sending)
- Provide your phone number
Other Fintech Apps Integration
Banking Apps:
Many Kenyan banks integrate with M-Pesa and show M-Pesa transactions in their apps:
- Equity Bank: Shows M-Pesa transactions in Equity Mobile App
- KCB Bank: KCB M-Pesa integration shows transactions
- Co-operative Bank: Co-op Bank app shows M-Pesa activity
Payment Aggregators:
Apps like:
- Pesapal: Shows M-Pesa payment confirmations
- iPay: Displays M-Pesa transaction details
- JamboPay: Integrates M-Pesa confirmations
What These Apps Show:
- Transaction amount
- Payer/recipient information
- Transaction status
- M-Pesa transaction ID
- Balance updates
Transaction Status
Completed Transactions:
- ✅ SMS received immediately
- ✅ Balance updated
- ✅ Transaction ID provided
- ✅ App shows "Completed" status
Pending Transactions:
- ⏳ May take a few seconds to process
- ⏳ SMS may be delayed
- ⏳ Check balance after a few minutes
Failed Transactions:
- ❌ SMS shows failure reason
- ❌ Money not deducted (or refunded)
- ❌ Transaction ID still provided for support
- ❌ Contact Safaricom if money deducted but transaction failed
Best Practices
- ✅ Always keep SMS receipts - Don't delete confirmation messages
- ✅ Verify amount immediately - Check SMS matches intended amount
- ✅ Save transaction ID - Screenshot or note down for records
- ✅ Check balance - Confirm transaction completed successfully
- ✅ Report issues quickly - Contact Safaricom immediately if problems
Additional Resources
M-Pesa FAQ
📋 Click to expand M-Pesa FAQ
General Questions
Q: What's the difference between Till and PayBill? A: Till (Buy Goods) is for fast, in-person payments without references. PayBill requires an account/reference number and is better for invoice-based payments.
Q: Do I need an agent for Till or PayBill payments? A: No, both Till and PayBill payments can be made directly from your M-Pesa menu without visiting an agent.
Q: Can I use PayBill without an account number? A: No, PayBill requires a mandatory account/reference number. You cannot complete the payment without it.
Q: What happens if I enter the wrong account number in PayBill? A: The payment will still go through, but you'll need to contact the merchant with your transaction details (amount, time, phone number, receipt number) for reconciliation.
Q: Is my money lost if I enter the wrong reference? A: No, your money is not lost. The merchant can reconcile the payment using the transaction details. Money is only truly lost if you pay the wrong PayBill number (belongs to a different organization).
Till (Buy Goods) Questions
Q: When should I use Till number? A: Use Till for in-person retail transactions like shops, restaurants, bars, supermarkets, and fuel stations where you want fast checkout.
Q: Can I add a reference to a Till payment? A: No, Till payments don't support account/reference numbers. They're designed for simple, fast transactions.
Q: How do I find a merchant's Till number? A: Merchants usually display their Till number at the point of sale, on receipts, or on their website/social media.
Q: Why is Till the most popular payment method? A: Till is the most frequent (50-60% of in-person merchant payments) because it's the fastest checkout with no reference needed, making it ideal for daily retail transactions.
PayBill Questions
Q: When should I use PayBill? A: Use PayBill for rent, school fees, utilities, subscriptions, loan repayments, or any payment where you need to reference an invoice or account.
Q: What format should the account number be? A: The format depends on what the merchant specifies. It could be an invoice number, student ID, meter number, phone number, customer number, or order ID.
Q: Does Safaricom validate the account number? A: No, Safaricom does not validate account numbers against names or databases. It's just a reference string for the merchant's reconciliation.
Q: Can I use my name as the account number? A: Yes, if the merchant accepts it. However, most merchants prefer specific formats like invoice numbers or customer IDs for easier reconciliation.
Q: What if I don't know the account number? A: Contact the merchant to get the correct account/reference number before making the payment. PayBill requires this field to complete the transaction.
Q: What happens if I enter the wrong PayBill number? A: If you pay the wrong PayBill number (belongs to a different organization), your money may be lost. Contact Safaricom customer service immediately if this happens.
Q: Why do merchants ask me to keep the SMS receipt? A: Merchants ask you to keep the SMS receipt so they can reconcile payments if you enter the wrong reference number. The receipt contains the transaction code, amount, time, and phone number needed for reconciliation.
Pochi la Biashara Questions
Q: What is Pochi la Biashara? A: Pochi la Biashara is a phone-number based payment method for micro-merchants. Customers send money directly to the merchant's phone number.
Q: Do I need a Till or PayBill number for Pochi? A: No, Pochi uses the merchant's phone number directly, so no Till or PayBill number is needed.
Q: Who should use Pochi la Biashara? A: Small or informal merchants, freelancers, market vendors, and home-based businesses who want simple phone-number based payments.
Q: How popular is Pochi la Biashara? A: Pochi represents approximately 3-7% of merchant payments. It's niche but growing, especially among small and informal merchants.
Agent Deposit Questions
Q: What is Agent Deposit? A: Agent Deposit is a cash-to-wallet top-up service, not a merchant payment method. You visit an M-Pesa agent to deposit cash into your M-Pesa wallet.
Q: Can I use Agent Deposit to pay a merchant? A: No, Agent Deposit only adds money to your wallet. After depositing, you would then use Till, PayBill, or Send Money to pay the merchant.
Q: When would I use Agent Deposit? A: Use Agent Deposit when you have cash and need to convert it to M-Pesa balance, or when receiving remittances or salary payments in cash.
Q: Why do stores use Agent Deposit? A: Stores use Agent Deposit when customers want cash → M-Pesa (top-up), when the business doesn't have Till/PayBill, or when staff are acting as "cash handlers" for wallet top-ups.
Transaction Frequency & Usage
Q: Which payment method is used most often? A: Till (Buy Goods) is the most frequent, representing approximately 50-60% of in-person merchant payments in Kenya.
Q: How often is PayBill used? A: PayBill represents approximately 25-35% of merchant payments, commonly used for rent, school fees, utilities, subscriptions, and loan repayments.
Q: What about STK Push? A: STK Push (Online PayBill/BuyGoods) represents approximately 10-15% of payments and is growing fast, especially for apps, websites, and delivery platforms.
Reconciliation & Errors
Q: What if I enter the wrong reference number? A: The payment will still go through. Contact the merchant with your transaction details (amount, time, phone number, receipt number) so they can reconcile the payment.
Q: Can Safaricom help if I enter the wrong reference? A: Safaricom does not validate or block payments based on reference numbers. Reconciliation is handled by the merchant, not Safaricom.
Q: When is money truly lost? A: Money is only truly lost if you pay the wrong PayBill number (belongs to a different organization). Wrong reference numbers can be reconciled by the merchant.
Q: What should I do if I paid the wrong PayBill number? A: Contact Safaricom customer service immediately. They may be able to help, but recovery is not guaranteed if the money went to a different organization.
Troubleshooting
Q: My PayBill payment failed. What should I do? A: Check that you entered the correct PayBill number and account number. Ensure you have sufficient M-Pesa balance and that your account is active. Contact Safaricom if the issue persists.
Q: The merchant says they didn't receive my payment. What should I do? A: Share your M-Pesa transaction receipt (SMS) with the merchant, including the transaction code, amount, time, and your phone number. The merchant can use this to locate and reconcile the payment.
Q: How long does a Till or PayBill payment take? A: M-Pesa payments are typically instant. The merchant should receive the payment immediately, though reconciliation may take a few minutes in some systems.