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Mpesa Paybill Charges 2024

Mpesa Paybill charges

M-Pesa, a leading mobile money transfer service in the country, offers a convenient way for businesses and customers to transact. Its Paybill service is widely used for collecting payments from customers, providing a seamless integration between businesses and their clientele.

Paybill charges vary depending on the tariff that the business uses, thus it’s important for businesses and customers to understand these costs.

This guide breaks down the Paybill charges according to the 3 tariffs:

  • Mgao Tariff
  • Business Bouquet Tariff
  • Customer Bouquet Tariff.

1) Mgao Tariff: Balanced cost sharing

The Mgao Tariff is a balanced approach where transaction charges are split between the customer and the business. This model is designed to distribute the financial impact of transaction fees.

Transaction charges:

Transaction RangeCustomer PaysBusiness PaysTotal
0 – 49000
50 – 100000
101 – 500505
501 – 1,00010010
1,001 – 1,50010515
1,501 – 2,50013720
2,501 – 3,50016925
3,501 – 5,000161834
5,001 – 7,500172542
7,501 – 10,000183048
10,001 – 15,000183957
15,001 – 20,000194362
20,001 – 25,000204767
25,001 – 30,000205272
30,001 – 35,000216283
35,001 – 40,000237699
40,001 – 45,0002380103
45,001 – 50,0002484108
50,001 – 70,0002484108
70,001 – 250,0002484108

2) Business Bouquet Tariff: Zero Cost to Businesses

The Business Bouquet Tariff is tailored for businesses looking to avoid transaction charges, placing the entire cost burden on the customer. This option is particularly attractive for businesses prioritizing operational cost savings.

Business Bouquet Paybill charges:

Transaction RangeCustomer Pays
0 – 490
50 – 1000
101 – 5005
501 – 1,00010
1,001 – 1,50015
1,501 – 2,50020
2,501 – 3,50025
3,501 – 5,00034
5,001 – 7,50042
7,501 – 10,00048
10,001 – 15,00057
15,001 – 20,00062
20,001 – 25,00067
25,001 – 30,00072
30,001 – 35,00083
35,001 – 40,00099
40,001 – 45,000103
45,001 – 50,000108
50,001 – 70,000108
70,001 – 250,000108

3) Customer Bouquet Tariff

In stark contrast, the Customer Bouquet Tariff ensures that customers are not charged for transactions, with businesses covering all associated costs.

This tariff is aimed at enhancing customer satisfaction by offering free transactions.

Transaction charges:

Transaction RangeBusiness Pays
0 – 490
50 – 1000
101 – 5005
501 – 1,00010
1,001 – 1,50015
1,501 – 2,50020
2,501 – 3,50025
3,501 – 5,00034
5,001 – 7,50042
7,501 – 10,00048
10,001 – 15,00057
15,001 – 20,00062
20,001 – 25,00067
25,001 – 30,00072
30,001 – 35,00083
35,001 – 40,00099
40,001 – 45,000103
45,001 – 50,000108
50,001 – 70,000108
70,001 – 250,000108

Conclusion

The selection of an M-Pesa Paybill tariff should align with the strategic financial goals of businesses and the convenience of customers.

Whether it’s balancing transaction costs, minimizing business expenses, or ensuring customer satisfaction, understanding these tariffs allows for informed decision-making. Each tariff offers distinct benefits, catering to the diverse needs of the marketplace.

Moneyspace Ke
Moneyspace Ke
We understand the hustle of everyday Kenyans – the drive to do more, save more, and be more, all while not earning just enough. At Money.ke, we aim to provide reliable information to help you build a scalable sidehustle business. Subscribe to find insights on financial products, practical saving tips, and viable business ideas in Kenya. 🇰🇪🤝📈.
Moneyspace Ke
Moneyspace Ke
We understand the hustle of everyday Kenyans – the drive to do more, save more, and be more, all while not earning just enough. At Money.ke, we aim to provide reliable information to help you build a scalable sidehustle business. Subscribe to find insights on financial products, practical saving tips, and viable business ideas in Kenya. 🇰🇪🤝📈.

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