February 28, 2025
In the rapidly evolving world of mobile money transactions, understanding the different payment options available can significantly enhance convenience and efficiency in managing your finances.
In Kenya, two popular methods for business transactions via mobile money are Paybill and Till numbers. While they may seem similar, they serve different purposes and offer distinct advantages.
A Paybill number is a business number provided by mobile money service providers, primarily M-Pesa, that allows businesses and organisations to receive payments from their customers.
Paybill numbers are typically used for services such as utility bill payments, school fees, insurance premiums, and other periodic payments.
1. Versatility: Suitable for a wide range of transactions, including bill payments, donations, and subscriptions.
2. Traceability: Each transaction requires the customer to enter an account number (e.g., student ID, invoice number), which makes it easy to trace and reconcile payments.
3. Reporting: Detailed transaction reports are available, which helps in financial tracking and accounting.
4. Security: Transactions are highly secure, with encryption ensuring the safety of funds.
A Till number, also known as a Buy Goods number, is another type of business number provided by mobile money service providers like M-Pesa.
Till numbers are specifically designed for retail businesses to facilitate quick and straightforward payments at the point of sale (POS).
1. Simplicity: Designed for retail and point-of-sale transactions, making it easy for customers to pay for goods and services.
2. No Account Number Needed: Customers do not need to enter an account number, which speeds up the payment process.
3. Immediate Access to Funds: Businesses can access funds immediately, enhancing cash flow management.
4. Customer Experience: Enhances the shopping experience by providing a quick and seamless payment method.
Purpose and Use:
• Paybill Numbers: Primarily used for service payments where tracking and reconciliation of payments are crucial. Suitable for utilities, school fees, loan repayments, etc.
• Till Numbers: Designed for retail environments to facilitate the purchase of goods and services. Ideal for supermarkets, shops, restaurants, and other retail businesses.
Transaction Process:
• Paybill Numbers: Requires the customer to enter a specific account number related to the service being paid for.
• Till Numbers: Does not require an account number; the customer only needs to enter the amount and confirm the payment.
Payment Reconciliation:
• Paybill Numbers: Easier reconciliation of payments with detailed transaction records tied to specific account numbers.
• Till Numbers: Simplified process focused on speed and efficiency at the point of sale, with less emphasis on detailed transaction reconciliation.
Access to Funds:
• Paybill Numbers: Funds are typically accessible after processing, which may not be immediate.
• Till Numbers: Funds are available to the business immediately, improving liquidity and cash flow management.
When to Use Paybill Numbers:
• When you need to track individual payments linked to specific accounts or invoices.
• For businesses and organisations that require detailed financial reporting and reconciliation.
• For service-based businesses where periodic payments are common.
When to Use Till Numbers:
• For retail businesses where speed and efficiency at the point of sale are critical.
• When you need immediate access to funds for operational purposes.
• To enhance the customer shopping experience with quick and hassle-free payments.
Understanding the differences between Paybill and Till numbers can help businesses and organisations choose the most appropriate payment solution for their needs.
Paybill numbers offer versatility and detailed financial tracking, making them ideal for service-based transactions.
Till numbers provide simplicity and immediacy, perfect for retail environments where speed and customer experience are paramount.