With Safaricom’s M-pesa and paybill numbers, buying and selling things has never been simpler. A Paybill number is a unique identifier issued by Safaricom that, when used to make a payment, causes that payment to be transferred directly to the vendor’s digital wallet.
Using paybill numbers to receive payments has the benefit of preventing the customer from canceling the payment after it has already been processed. This has prevented any instances of fraud by customers who make a purchase but then try to return it.
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How Much Does M-Pesa Paybill Transaction Cost?
When making a payment using the paybill number, the amount of the transaction fee is determined by the tariff the supplier has signed up for. There are three different rates that can be added to your monthly bill.
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 client is responsible for all paybill costs without any contribution from the company. Customers’ out-of-pocket expense will go up as a result, thus most retailers will pass the added cost on to them.
| 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
Under this tariff, the company pays for everything associated with a transaction, while the customer pays only the price of the good or service itself. From the point of view of the consumer, this is the most reasonable rate.
When competition is high, businesses typically absorb some of the transaction costs in order to attract and retain customers. Here are the associated fees for your paybill.
| 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% |
Conclusion
M-pesa paybill number is a fantastic method of conducting business and has facilitated the growth and success of enterprises by facilitating cashless transactions.
To pay for groceries, utilities, and even matatus, the cashless payment system has been improved. Even if you don’t have any funds in your Mpesa account, you can still utilize the paybill number with Fuliza.
Loan payments and Sacco savings are also being transferred using the paybill number.