How to apply for an M-Pesa Paybill Number

The growth of mobile money usage in Kenya has made it necessary for Safaricom (the largest Telcom in the country) to introduce payment options both for businesses and customers. This is driven by the millions of customers who use M-PESA daily.

Since its launch in 2007, M-pesa is currently the largest mobile money network in the country with over 30 million regular active users. One of the largest M-Pesa innovations is the Paybill number. Hence, let’s look at the process of how to apply for an M-Pesa Paybill number.

A Paybill number allows the customer to pay for goods and businesses directly from their M-Pesa wallet. This is made possible by using a unique code given to businesses by Safaricom as the Paybill number.

Advantages of an M-pesa Paybill Number

1. Convenient payment method– some customers prefer storing money in an M-pesa wallet as opposed to walking with hard cash. Using Lipa na M-pesa payment method makes it easy and convenient for such customers to pay for goods and services.
2. Safe payment method– since M-pesa utilizes mobile banking; businesses can safeguard themselves from losing their money easily. Storing a lot of money on your Mpesa account ensures that your funds are well guarded, unlike holding a lot of cash in the cash till.
3. Easy funds disbursement– As a business owner, you can use the funds in the M-pesa Paybill account to pay your clients and workers at the click of a button.
4. Real-time settlement– M-pesa Paybill works by sending the money to your account immediately. Unlike other payment schemes where the money takes about 3 days to process payments, the Mpesa Paybill is instantaneous in cash settlement.
5. Available track record– whenever an M-pesa payment is made, the customer and the business person receive a confirmation code of the payment. This helps to keep track of all the incoming payments, thus simplifying your accounting process.

Disadvantages of an M-pesa paybill number

1. Transaction costs– when customers use a pay bill number to pay for goods and services, they incur a transaction fee. The transaction fee paid depends on the transaction amount. The higher the transaction amount, the higher the fees.
2. System downtime– A system downtime in this system could affect payments as opposed to someone using cash.
3. Susceptibility to fraud– Having funds on a mobile wallet makes it vulnerable to theft through various ways such as hacking and simswap. A challenge that most M-pesa users continue to have daily.

Types of Lipa Na M-pesa Payment Options

1. Buy goods and services till the number
2. Paybill number
3. Pochi la Biashara

In this article, we are going to look at the process of applying for an M-pesa Paybill number.

Types of business Paybill tariff plans

There are different Paybill tariff plans to choose from as a business. They include:

1. Mgao Tariff– in this tariff plan, the customer and the business split the transaction charges between them. However, the customer bears more of the transaction charges burden.
2. Business bouquet Tariff– In this tariff plan, the customer bears all the transaction cost charges while the business does not bear any transaction charges at all.
3. Customer bouquet Tariff– For this tariff plan, the business bears all the transaction charges, while the customer does not bear any transaction charges.

Requirements of How to apply for an M-Pesa Paybill Number

The basic Mpesa pay bill account application forms can be found on the Safaricom website. They include:

• Mpesa Paybill tariff guide
• Paybill application form and terms and conditions
• Paybill merchant USSD application form

However, requirements differ depending on the category of the business.

·        Rental business

1. A duly filled and signed application form & terms and conditions
2. A copy of identification document e.g. ID/ passport/alien ID/ Military ID
3. Copy of lease agreement/allotment letter
4. KRA pin certificate. How to Get a KRA PIN Certificate
5. Cancelled cheque or a letter from the bank confirming your personal or business’ bank details
6. A signed tariff guide

·        Sole proprietor

1. A duly filled and signed application form & Terms and conditions
2. A copy of the certificate of registration of the business permit coy
3. A copy of identification documents e.g. ID/passport/alien ID/military ID
4. A cancelled cheque or a letter from the bank confirming your bank details as per the certificate of registration
5. KRA pin certificate
6. A signed tariff guide

·        Limited liability Company

1. A duly filled and signed application form $ Terms and conditions
2. A copy of the certificate of incorporation
3. A filled and stamped resolution letter signed by the company’s directors
4. Directors’ KRA pin certificates
5. Company’s KRA pin certificate
6. Copies of directors’ identification documents e.g. ID/alien ID/passport/Military ID
7. A cancelled cheque or a letter from the bank stating the company’s bank details
8. A copy of CR12, which is valid for 90 days, or a recent annual return document with a filing receipt
9. A signed tariff guide

For foreign certificates that already have a certificate of compliance, a copy of the certificate of compliance should be attached. Learn More on How to Register a Company in Kenya.

·        Non-Governmental Organizations (NGOs) and foundations

1. A duly filled and signed application form & Terms and conditions
2. A copy of the registration certificate
3. A signed tariff guide
4. A cancelled cheque or a letter from the bank confirming the organization’s bank details
5. KRA pin certificates- for the organization and the directors
6. Copies of identification documents for at least 2 directors and appointed operators i.e. ID/Alien ID/ passport/ Military ID
7. A filled and stamped resolution letter signed by the organization’s founder or directors
8. A signed letter from the board of the NGO, confirming the registration and existence of the organization
9. Foreign NGOs should include their certificate of compliance.

·        Partnerships

1. A duly filled and signed application form & terms and conditions
2. A copy of the registration certificate
3. Copies of identification documents for at least 2 directors and appointed operators
4. A cancelled cheque or letter from the bank confirming the bank details of the partnership
5. The partnership’s KRA pin certificate
6. A filled and stamped letter signed by the founder or members of the partnership.
7. A copy of the partnership deed or the affidavit
8. A signed tariff guide

·        Churches

1. A duly filled and signed application form& terms and conditions
2. A signed tariff guide
3. A cancelled cheque or letter from the bank confirming the church’s bank details
4. The church’s KRA pin certificate.
5. A copy of the certificate of registration
6. A filled and stamped letter signed by at least 2 church officials
7. Copies of identification documents for church officials and authorized personnel e.g priests

·        Co-operative societies

1. A duly filled and signed application form & terms and conditions
2. A signed tariff guide
3. A cancelled cheque or letter from the bank confirming the co-operative’s bank details
4. The co-operative’s KRA pin certificate
5. Copies of identification documents for the cooperative’s director and authorized personnel
6. A filled and stamped letter signed by at least 2 directors or authorized signatories
7. A copy of the registration certificate

·        Registered Chamas

1. A duly filled and signed application form & Terms and conditions
2. A signed tariff guide
3. A copy of the registration certificate
4. The Chama’s KRA pin certificate
5. A cancelled cheque or letter from the bank confirming Chama’s bank details
6. Copies of identification documents for the Chama’s officials and authorized officials
7. A filled and stamped letter signed by at least 2 Chama officials

·        Saccos

1. A duly filled and signed application form & terms and conditions
2. A copy of the registration certificate and trade license
3. A signed tariff guide
4. A cancelled cheque or letter from the bank confirming Sacco’s bank details
5. Copies of identification documents for the Sacco directors and authorized personnel
6. The Sacco’s KRA pin certificate
7. The directors’ KRA pin certificate
8. A signed letter from SASRA confirming the SACCO registration

·        Parastatals

1. A duly filled and signed application form & Terms and conditions
2. A signed tariff guide
3. The organization’s KRA pin certificate
4. A filled and stamped letter signed by at least 2 directors or authorized signatories
5. Copies of identification documents for the directors and authorized persons
6. A cancelled cheque or letter from the bank confirming the parastatal’s bank details.

·        Government-sponsored schools

1. A duly filled and signed application form & Terms and conditions
2. A signed tariff guide
3. A filled and stamped letter signed by at least 2 Board of Governors from the County Education Office
4. Copies of identification documents for the directors and authorized persons
5. A cancelled cheque or letter from the bank confirming the school’s bank details
6. The school’s KRA pin certificate

·        Private schools

1. A duly filled and signed application form & Terms and conditions
2. A signed tariff guide
3. A copy of the certificate of incorporation
4. A copy of the ministry of education license
5. A filled and stamped letter signed by the owner of the directors of the school
6. A cancelled cheque or letter from the bank confirming the school’s details
7. Copies of identification documents for at least 2 directors
8. A copy of the Kenyan CR12 with 90-day validity.
9. The school’s KRA pin certificate
10. The directors’ KRA pin certificate

Steps of applying for an M-pesa paybill number

Step 1: Visit the Safaricom website. Then here or here.

Step 2: Download the relevant documents depending on your organization

Step 3: Attach all the required documents. These include ID and Business permit.

Step 4: Drop off your application form and attached documents at the nearest Safaricom Customer Care shop.

Step 5: Wait for the verification of your account.

How to withdraw money from your M-pesa Paybill account

Step 1: Dial *234# on your Safaricom line

Step 2: Choose option 4 i.e. ‘merchant services’ and send

Step 3: Choose option 1 i.e. ‘ Withdraw cash’

Step 4: Select the option you want; either to send money to your mobile number or your bank account.