How much does it cost the customer to pay a Buy Goods Till?

Nothing. The customer pays zero on every Buy Goods (Lipa na M-PESA) transaction, from KES 1 up to the KES 250,000 per-transaction cap. The exception is fuel stations, where the customer pays instead of the merchant.

How much does it cost the customer to pay a paybill?

Up to KES 108 per transaction, following the send-money tariff. KES 1 to 100 is free. KES 1,000 costs KES 13. KES 20,000 costs KES 105. Some businesses (KPLC, KRA, banks, betting) absorb the fee so the customer sees KES 0, but the standard tariff caps at KES 108.

Why is Buy Goods free but paybill is not?

Buy Goods was launched in 2018 with a zero-rated customer fee to compete with cash at merchant counters. The merchant pays 0.55 percent instead. Paybill kept the standard send-money tariff on the customer side, with an option for the business to absorb the fee at extra cost.

What does the merchant pay on Buy Goods?

Free for collections from KES 0 to KES 500. Then 0.55 percent of the amount for KES 501 to KES 36,363. Above KES 36,363, a flat KES 200 per transaction. So on a KES 10,000 sale, the merchant pays KES 55.

Why do fuel stations charge me on Buy Goods?

Fuel stations are the one Buy Goods exception where the customer pays instead of the merchant. Fuel margins are thin (typically under 3 percent) and stations negotiated to shift the 0.55 percent fee onto the customer. Confirm the price on the pump before paying.

Which should I use for a business payment?

If the business has both, use the Till. It is free for you. Use the paybill only when there is an account number to route your payment (school fees, utility account, bank account deposit). See our full comparison at /compare/paybill-vs-till.

Paybill vs Buy Goods Charges: Who Pays on M-PESA

Paying a paybill on M-PESA costs the customer up to KES 108. Paying a Buy Goods Till costs the customer NOTHING, the merchant pays 0.55 percent up to KES 200. That single asymmetry is why the checkout at a supermarket asks for a Till and the school office asks for a paybill: paybill needs the account number to route your payment, Till does not.

Paybill vs Buy Goods, side by side (2026)

Amount band (KES)	Paybill customer fee	Buy Goods customer fee	Buy Goods merchant fee
1 to 100	Free	Free	Free
101 to 500	7	Free	Free
501 to 1,000	13	Free	0.55%
1,001 to 1,500	23	Free	0.55%
1,501 to 2,500	33	Free	0.55%
2,501 to 3,500	53	Free	0.55%
3,501 to 5,000	57	Free	0.55%
5,001 to 7,500	78	Free	0.55%
7,501 to 10,000	90	Free	0.55%
10,001 to 15,000	100	Free	0.55%
15,001 to 20,000	105	Free	0.55%
20,001 to 36,363	108	Free	0.55%
36,364 to 250,000	108	Free	200 (flat)

Source: Safaricom M-PESA Consumer Tariffs and Limits, last updated 4 August 2026 (safaricom.co.ke). Paybill customer fees follow the send-money tariff. Many paybills (KPLC, KRA, most banks, betting operators) absorb this fee at their own cost, so the customer sees KES 0 on the confirmation SMS.

Why the two channels charge differently

Buy Goods (Lipa na M-PESA) launched in 2018 with a customer-free model to displace cash at supermarket, restaurant, and retail counters. Safaricom shifted the fee to the merchant (0.55 percent) so shoppers had no reason to prefer cash. The KES 0-500 band was zero-rated for merchants in the 7 August 2026 tariff refresh to help small traders, extending the free band up from the previous KES 0-200.

Paybill kept the traditional send-money tariff on the customer side. Businesses can choose to absorb the fee (at a higher merchant rate) or pass it to the customer. Bill payers, tax agencies, and banks almost always absorb. School fees and small paybills often do not.

Which should you pick?

Buying goods or services at a counter. Till, always. Free for you.
Paying school fees, utility bills, or KRA. Paybill. Needs an account number so the recipient can allocate your payment.
Depositing to your bank. Bank paybill. Most absorb the fee.
Fuel station. Either channel costs you money. Buy Goods is usually simpler.
Small trader with both a Till and a Pochi. Till if you can, it is free. Pochi if the trader only has that (fees apply, see the Pochi promo tariff).

For a full breakdown of when a business would choose Till over Paybill and vice versa, see our Paybill vs Till comparison guide.

Work out your exact cost

Bands are easy to misread. Drop your amount into the M-PESA send and withdraw cost calculator to see the 2026 fee across every mode.