You've borrowed money and it's time to repay. Your lender sends you a message with a Paybill number and an account number, or maybe a till number. You open your M-Pesa and... pause. What's the difference? Which menu do you use? And what happens if you get it wrong?
These are questions more people have than admit to. Let's clear it all up.
The M-Pesa Payment Menu Options
When you go to make a payment on M-Pesa (via USSD: *334# → Lipa na M-Pesa, or via the Safaricom app), you'll see two main options under Lipa na M-Pesa:
- Pay Bill — for paying businesses using a Paybill number
- Buy Goods and Services — for paying using a till number
These sound similar but work differently, and using the wrong one can cause your payment to fail or, in some cases, go to an unintended recipient.
What Is a Paybill Number?
A Paybill number is a 5–6 digit business number assigned by Safaricom to organisations that need to collect payments from customers. What makes Paybill unique is that it requires an account number in addition to the business number.
The account number field is where you enter your loan reference — typically your phone number, national ID number, or a loan account number that the lender tells you to use. This is critical: the account number is how the lender identifies which customer made the payment and reconciles it to your loan.
Example: To repay a loan via Paybill, you'd enter:
Business number: 123456
Account number: [your phone number or loan ID]
Amount: [your repayment amount]
Paybill is the most common payment method for loan repayments in Kenya because it allows the lender to track exactly who paid and how much.
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What Is a Till Number?
A till number (used under "Buy Goods and Services") is typically a 5–6 digit number assigned to a specific merchant point of sale. When you pay a till number, no account number is required — the money goes directly to that merchant's account.
Till numbers are common for physical retail (paying at a shop counter, a supermarket, a service point) and for some digital merchants. They're simpler to use — just the till number and amount — but because there's no account number field, they don't allow the lender to identify who made the payment.
This is why most loan repayments use Paybill, not till numbers. If you paid a till number by mistake when you were supposed to pay a Paybill, your payment might arrive in the lender's account but without identification — meaning they can't automatically match it to your loan. You'd need to contact customer service with your M-Pesa transaction reference to get it reconciled.
Paybill vs. Till: A Direct Comparison
| Feature | Paybill | Till Number |
|---|---|---|
| Menu path | Lipa na M-Pesa → Pay Bill | Lipa na M-Pesa → Buy Goods & Services |
| Account number required? | Yes | No |
| Best for | Loan repayments, utilities, rent | Retail purchases, point-of-sale payments |
| Payment tracking | High — account number identifies payer | Low — no account number |
| Confirmation SMS | Shows business name + account number | Shows merchant name + amount only |
Common Mistakes When Repaying Loans
Entering the Wrong Account Number
This is the most common error. If you use your name, a random number, or leave the account field blank when the lender expects your phone number (or vice versa), the payment may arrive but won't be matched to your loan. Always read the repayment instructions carefully and use the exact account number format your lender specifies.
Using Till Number When Paybill Was Required
If you navigate to "Buy Goods" and enter a Paybill number by mistake, one of two things happens: the payment fails (Safaricom recognises the number format is wrong for that menu), or it succeeds but goes somewhere unintended. Always check which menu option to use before entering any numbers.
Paying the Wrong Amount
Some lenders don't accept partial repayments — they require the full outstanding amount. Check your loan statement or app before initiating payment to confirm the exact amount due.
Typing the Paybill Number Incorrectly
One wrong digit sends money to a completely different business. Before confirming, pause on the review screen (M-Pesa shows you a summary before you enter your PIN) and verify the business name matches your lender's name. If it shows something unfamiliar, cancel and re-enter.
What To Do If Your Payment Doesn't Reflect
If you've made an M-Pesa payment and your loan balance hasn't updated within a few minutes, here's what to do:
- Save your M-Pesa confirmation SMS — it contains a transaction reference number (format: SAxxxxxxxx)
- Log into your loan app and check whether the payment is pending
- Contact the lender's customer support with your transaction reference, amount, and date of payment
- They can trace the payment on Safaricom's end and manually reconcile it if needed
This is why keeping your M-Pesa confirmation SMS until the repayment is confirmed in the app is important. It's your proof of payment.
A Quick Cheat Sheet for Loan Repayments
- If your lender gives you a Paybill number: Use *334# → Lipa na M-Pesa → Pay Bill
- Enter the business number exactly as given
- Enter the account number in the exact format specified (usually your registered phone number)
- Enter the amount
- Confirm the business name on the review screen matches your lender
- Enter your PIN
- Save the confirmation SMS
Repaying your loan correctly matters more than most people realise — a payment that doesn't reflect can lead to late fees and unnecessary stress. Platforms like SwiftCash make this easy with clear repayment instructions and a straightforward Paybill setup. Know which number you're paying, use the right menu, and your repayment will clear without a hitch.