In Kenya’s digital economy, we’ve long accepted a network tax. If your money was on Airtel but your biller only had an M-Pesa Paybill, you were stuck in a cycle of high fees and tedious transfers.
But a major shift in mobile money interoperability is changing the game. I recently used my Airtel Money account to pay an M-Pesa Paybill, and not only was the process instant, but I actually received my transaction costs back as airtime.
Airtel’s current strategy, often highlighted in their Rudishiwa campaign, is built on aggressive value. While Safaricom’s M-Pesa remains the market leader, Airtel is gaining ground (growing from 2.9% to 11% market share in recent years) by eliminating the friction of network lock-in.
When you pay an M-Pesa Paybill via Airtel, you pay the standard transaction fee, but Airtel refunds that fee back to your line as airtime. Essentially, you are settling your bills and pre-paying for your next data bundle or call credit simultaneously.
Airtel Money has been quietly expanding its utility to make it a one-stop-shop for Kenyan consumers:
- #Till ni Till: You can now pay directly to any Lipa na M-Pesa Buy Goods Till for FREE.
- eCitizen Savings: Airtel announced up to 25% lower transaction fees for government services. Whether you are renewing a passport or paying for a driving license, using Airtel Money on the eCitizen platform is significantly cheaper than the market average.
- Zero-Rated Utilities: Airtel Money offers zero charges on utility bill payments for Kenya Power (KPLC), water bills, and Pay TV services like DSTV, GOtv, and Zuku.
- Revised Limits: To accommodate SMEs and high-value users, Airtel has increased its per-transaction limit to Ksh. 250,000, with a daily limit of Ksh. 500,000.
How to get your fees back
If you want to turn your transaction costs into airtime, follow this path:
- *Dial 334# or use the My Airtel App.
- Navigate to Airtel Money > Make Payments.
- Select Paybill > M-Pesa Paybill.
- Enter the Business Number and your Account Number.
- Input the amount and your PIN.
The Result: You’ll receive an SMS confirming the payment, followed shortly by a notification: “You have received [Amount] airtime as a refund for your transaction fees.”