Mpesa Paybill is a revolutionary cash collection service provided by Safaricom, Kenya’s leading telecommunications company. Since its inception, Mpesa has transformed how businesses and individuals transact by offering a fast, secure, and convenient way to make payments. The Paybill service allows businesses to receive payments from customers through a designated Paybill number, making it ideal for utility payments, loan repayments, e-commerce transactions, and more.
As we move into 2024, here is a detailed breakdown of the latest Mpesa Paybill transaction charges, which apply to customers making payments using Mpesa.
What is Mpesa Paybill?
Mpesa Paybill is a cash collection tool that enables businesses and institutions to receive payments directly through their Paybill number, which is linked to their business account. The service simplifies payments for services such as electricity, water, insurance premiums, school fees, and hospital bills. Paybill is convenient, secure, and widely accepted across Kenya, making it a go-to payment method for millions of users.
Mpesa Paybill Transaction Charges 2024
Below is a table of the Mpesa Paybill transaction charges for 2024, based on the amount being transferred. These charges apply to individuals making payments to businesses or institutions through their Paybill numbers:
| Amount (KSh) | Charges (KSh) |
|---|---|
| 1 – 49 | 0 |
| 50 – 100 | 0 |
| 101 – 500 | 5 |
| 501 – 1,000 | 10 |
| 1,001 – 1,500 | 15 |
| 1,501 – 2,500 | 20 |
| 2,501 – 3,500 | 25 |
| 3,501 – 5,000 | 34 |
| 5,001 – 7,500 | 42 |
| 7,501 – 10,000 | 48 |
| 10,001 – 15,000 | 57 |
| 15,001 – 20,000 | 62 |
| 20,001 – 25,000 | 67 |
| 25,001 – 30,000 | 72 |
| 30,001 – 35,000 | 83 |
| 35,001 – 40,000 | 99 |
| 40,001 – 45,000 | 103 |
| 45,001 – 50,000 | 108 |
| 50,001 – 70,000 | 108 |
| 70,001 – 250,000 | 108 |
Key Insights on Mpesa Paybill Charges for 2024
- Zero Charges for Small Transactions: For payments ranging from Ksh 1 to Ksh 100, customers are not charged any transaction fees. This is a great advantage for those paying small bills or making micropayments.
- Reasonable Fees for Mid-Range Transactions: Payments within the range of Ksh 101 to Ksh 5,000 have fees ranging between Ksh 5 and Ksh 34. These are relatively affordable charges for most daily transactions, such as paying utility bills or making small purchases.
- Capped Fees for Large Transactions: Payments exceeding Ksh 50,001 up to Ksh 250,000 are capped at Ksh 108. This cap benefits businesses and individuals who frequently make larger transactions.
Why Mpesa Paybill is Ideal for Businesses
For businesses, Mpesa Paybill offers several benefits:
- Convenience: Customers can easily pay for goods or services anytime and anywhere, reducing the hassle of handling cash or bank transfers.
- Security: Mpesa transactions are encrypted and highly secure, protecting both the customer and the business from fraud.
- Real-Time Payments: Payments are processed instantly, allowing businesses to have quick access to their funds, improving cash flow.
- Widespread Adoption: With over 30 million Mpesa users in Kenya, businesses are tapping into a large customer base by accepting payments via Paybill.
How to Use Mpesa Paybill for Payments
Using Mpesa Paybill is straightforward. Here is a quick guide:
- Go to your Mpesa menu on your phone.
- Select Lipa na Mpesa.
- Choose Paybill.
- Enter the business’s Paybill number.
- Input the account number (e.g., your account number with the business or a customer reference).
- Enter the amount you want to pay.
- Confirm the details and complete the transaction by entering your Mpesa PIN.
You will receive a confirmation message from Mpesa and the business or institution you are paying will also receive notification of your payment.
How Mpesa Paybill Benefits Customers
- No Need for Cash: Customers can make payments electronically, reducing the need to carry cash or queue at banking halls.
- Instant Confirmations: Once the payment is made, both the customer and business receive real-time confirmations via SMS.
- Available Nationwide: Mpesa is accessible in every part of Kenya, including remote areas, making it a reliable payment option across the country.
- Affordable Charges: With no fees for small payments and competitive charges for larger transactions, Mpesa Paybill offers cost-effective payment solutions for customers.
Mpesa Paybill vs Till Numbers
While both Paybill and Till Numbers are used for Mpesa payments, they serve slightly different purposes:
- Mpesa Paybill is ideal for paying bills like utilities, school fees, or hospital charges. It links directly to a business or institution’s bank account.
- Mpesa Till Number, on the other hand, is mostly used for retail transactions. It’s perfect for businesses that accept frequent, small payments, such as shops or restaurants. Till payments also often come with zero transaction fees for customers.
Mpesa Paybill continues to be a vital service for businesses and customers in Kenya, streamlining payments in an increasingly cashless economy. With its user-friendly interface, affordable charges, and wide acceptance, Paybill is set to remain a top choice for businesses and individuals alike in 2024.
Whether you are paying your electricity bill, school fees, or making business transactions, understanding the Mpesa Paybill transaction charges can help you better manage your expenses. As Kenya moves further into the digital economy, services like Paybill are essential for driving financial inclusion and business efficiency.
For businesses looking to adopt the Mpesa Paybill service, Safaricom provides easy setup procedures to get started. For more information, visit the Safaricom website or contact their customer service to get a Paybill number tailored to your business needs.
