What is the difference between Paybill and Till Number?
A guide to the correct Lipa na Mpesa product, Paybill or Buygoods (Till Number), to select for your business transactions.
The M-Pesa services have been in use for the longest time now, and with more users on the app, businesses have paved their way through the application easily. What benefit does it have for businesses? Let's discuss that in our article below and learn the difference between the Mpesa Paybill and Buygoods (M-PESA Business Till Number) products.
A Paybill or Till number is a unique code attached to a business's phone number for account identification that allows customers to pay money into business accounts through M-Pesa. Customers' money paid in the Till or Paybill number is mainly for the services and goods from a business, and once the payment is made, they will each receive a notification.
Customers can purchase through the M-Pesa Paybill or Till number, transfer funds to other businesses or individuals, and even make deposits.
How can you get an M-Pesa Paybill number? It's easy; all you need to do is register your business with Safaricom. This will make the whole process for you since you will be given a Paybill number that will allow you to receive payments from your customers.
In order to create an M-Pesa Paybiill for your business account, there are several procedures that you have to go through. With us are some of the steps that need to be taken as follows;
The difference between Paybill and Till number is not so big, but with us are some of the reasons we believe they have a difference as follows;
The difference falls into these three categories:
To understand why two different products exist, we have to go back to the early days of Mpesa.
When Mpesa launched in 2007, sending money between individuals was the only option. However, due to the growing popularity, the businesses that got interested purchased a dedicated regular phone number to collect the payments.
These are some of the challenges businesses that use regular phone numbers often face.
To solve these problems, Safaricom, in partnership with Kopokopo, launched Buygoods and Paybill.
While it's possible to use MPESA on your phone for personal purposes, it can be very complex and challenging in business. The video below shows how you can use Helloduty to automate it for you.
A Buygoods number is a short 6-digit number that a business shares with its customers. Buygoods is best for small customer-facing businesses such as supermarkets, hardware, etc., where such interaction is short-lived.
A Paybill is a 7 - 9 digit number that represents an organization. The organization can then provision another number, the account number, per customer or invoice. This account number makes it super easy for the business to reconcile its books later.
A Paybill number is best for recurring transactions, e.g., Utility bills, invoice payments, gambling, or APIs.
The difference between Paybill and Buygoods is therefore summarized into the following:
If you want to integrate the M-Pesa API to reconcile your payments automatically, we recommend applying for a Paybill number. Why? Since July 2022, Safaricom has started masking our phone numbers in their API responses. With Paybill, you can ask your customers to input a unique Account Number that helps you reconcile the payment.
However, Buygoods will be the recommended option if you want to use the STK pop-up.
People also read; how to request for an Mpesa Paybill or Buygoods
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