Safaricom has M-pesa has made buying and selling goods easy through the paybill numbers. Paybill number is a special ID provided by Safaricom such that once you enter the number when making the payment, the money is sent to the digital wallet of the vendor and they receive money.
One advantage of using paybill numbers to receive the payments is that the client cannot be able to reverse the transaction. This has ensured no fraudulent activities are carried out by clients who buy goods and later reverse the transaction.
How Much Does M-Pesa Paybill Transaction Cost?
The amount of transaction fee charged when you use the paybill number depends on the tariff the vendor has registered for. There are 3 paybill tariffs
1. Mgao Tariff
In this tariff, the transaction charges are shared between the customer and business.
| MGAO TARIFF TRANSACTION CHARGES | ||||||
| Minimum Transaction Amount | Maximum Transaction Amount | Transaction Cost | Charge to Customer | Charge to Business | % Customer Share | % Business Share |
1 | 49 | Free | Free | Free | 0% | 0% |
| 50 | 100 | Free | Free | Free | 0% | 0% |
| 101 | 499 | 23 | 23 | 0 | 100% | 0% |
| 500 | 999 | 23 | 23 | 0 | 100% | 0% |
| 1,000 | 1,499 | 35 | 23 | 12 | 66% | 34% |
| 1,500 | 2,499 | 35 | 23 | 12 | 66% | 34% |
| 2,500 | 3,499 | 56 | 34 | 22 | 61% | 39% |
| 3,500 | 499 | 56 | 34 | 22 | 61% | 39% |
| 5,000 | 7,499 | 85 | 34 | 51 | 40% | 60% |
| 7,500 | 9,999 | 85 | 34 | 51 | 40% | 60% |
| 10,000 | 14,999 | 113 | 34 | 79 | 30% | 70% |
| 15,000 | 19,999 | 113 | 34 | 79 | 30% | 70% |
| 20,000 | 24,999 | 113 | 34 | 79 | 30% | 70% |
| 25,000 | 29,999 | 113 | 34 | 79 | 30% | 70% |
| 30,000 | 34,999 | 113 | 34 | 79 | 30% | 70% |
| 35,000 | 39,999 | 202 | 45 | 157 | 22% | 78% |
| 40,000 | 44,999 | 202 | 45 | 157 | 22% | 78% |
| 45,000 | 49,999 | 202 | 45 | 157 | 22% | 78% |
| 50,000 | 69,999 | 210 | 49 | 161 | 23% | 77% |
| 70,000 | 15,000 | 210 | 49 | 161 | 23% | 77% |
2. Business Bouquet Tariff
In this tariff, the business owner does not share the paybill charges and the customer bears all charges. It will make the cost of purchase expensive to the customer and most business owners will opt to share the cost with the customer.
| BUSINESS BOUQUET TARIFF TRANSACTION CHARGES | ||||||
| Minimum Transaction Amount | Maximum Transaction Amount | Transaction Cost | Charge to Customer | Charge to Business | % Customer Share | % Business Share |
| 1 | 49 | Free | Free | Free | 0% | 0% |
| 50 | 100 | Free | Free | Free | 0% | 0% |
| 101 | 499 | 23 | 23 | 0 | 100% | 0% |
| 500 | 999 | 23 | 23 | 0 | 100% | 0% |
| 1,000 | 1,499 | 34 | 34 | 0 | 100% | 0% |
| 1,500 | 2,499 | 34 | 34 | 0 | 100% | 0% |
| 2,500 | 3,499 | 56 | 56 | 0 | 100% | 0% |
| 3,500 | 499 | 56 | 56 | 0 | 100% | 0% |
| 5,000 | 7,499 | 85 | 85 | 0 | 100% | 0% |
| 7,500 | 9,999 | 85 | 85 | 0 | 100% | 0% |
| 10,000 | 14,999 | 112 | 112 | 0 | 100% | 0% |
| 15,000 | 19,999 | 112 | 112 | 0 | 100% | 0% |
| 20,000 | 24,999 | 112 | 112 | 0 | 100% | 0% |
| 25,000 | 29,999 | 112 | 112 | 0 | 100% | 0% |
| 30,000 | 34,999 | 112 | 112 | 0 | 100% | 0% |
| 35,000 | 39,999 | 202 | 202 | 0 | 100% | 0% |
| 40,000 | 44,999 | 202 | 202 | 0 | 100% | 0% |
| 45,000 | 49,999 | 202 | 202 | 0 | 100% | 0% |
| 50,000 | 69,999 | 210 | 210 | 0 | 100% | 0% |
| 70,000 | 15,000 | 210 | 210 | 0 | 100% | 0% |
3. Customer Bouquet Tariff
In this tariff, the business bears all the cost of the transactions, and the customer pays for only the cost of the item or service they are receiving. It is the friendliest tariff from the customer’s perspective.
Businesses, where the competition is very stiff, will try to make the cost to the customer as low as possible and will bear the cost of the transaction. Here are the paybill cost charges.
| CUSTOMER BOUQUET TARIFF TRANSACTION CHARGES | ||||||
| Minimum Transaction Amount | Maximum Transaction Amount | Transaction Cost | Charge to Customer | Charge to Business | % Customer Share | % Business Share |
| 1 | 49 | Free | Free | Free | 0% | 0% |
| 50 | 100 | Free | Free | Free | 0% | 0% |
| 101 | 499 | 23 | 0 | 23 | 0% | 100% |
| 500 | 999 | 23 | 0 | 23 | 0% | 100% |
| 1,000 | 1,499 | 34 | 0 | 34 | 0% | 100% |
| 1,500 | 2,499 | 34 | 0 | 34 | 0% | 100% |
| 2,500 | 3,499 | 56 | 0 | 56 | 0% | 100% |
| 3,500 | 499 | 56 | 0 | 56 | 0% | 100% |
| 5,000 | 7,499 | 85 | 0 | 85 | 0% | 100% |
| 7,500 | 9,999 | 85 | 0 | 85 | 0% | 100% |
| 10,000 | 14,999 | 112 | 0 | 112 | 0% | 100% |
| 15,000 | 19,999 | 112 | 0 | 112 | 0% | 100% |
| 20,000 | 24,999 | 112 | 0 | 112 | 0% | 100% |
| 25,000 | 29,999 | 112 | 0 | 112 | 0% | 100% |
| 30,000 | 34,999 | 112 | 0 | 112 | 0% | 100% |
| 35,000 | 39,999 | 202 | 0 | 202 | 0% | 100% |
| 40,000 | 44,999 | 202 | 0 | 202 | 0% | 100% |
| 45,000 | 49,999 | 202 | 0 | 202 | 0% | 100% |
| 50,000 | 69,999 | 210 | 0 | 210 | 0% | 100% |
| 70,000 | 15,000 | 210 | 0 | 210 | 0% | 100% |
See also:
- Is Fuliza A Loan Or A Credit Facility?
- How To Check Fuliza Limit
- Cooperative Bank Of Kenya Branch Codes
- How Much Do M-pesa Agents Earn?
- How To Get M-pesa Statement
- How To Reverse M-pesa Transaction
- How To Buy Airtel Airtime From M-Pesa
- How To Link PayPal With M-Pesa
- M-Pesa Transaction Charges
- M-Pesa Impact On The Kenyan Society
- What Is Fuliza?
Conclusion
M-pesa paybill number is a great way of doing business and it has made it easy for businesses to prosper through the cashless payment system. Pay for your shopping, pay electricity bills, pay telephone bills, even matatus have upgraded to the cashless payment system. You can even use the paybill number when you have no money in your Mpesa account using Fuliza. Saccos are also using the paybill number to receive loan repayments and Sacco savings.
