M-Pesa vs Bank Transfer (EFT / RTGS): feature by feature
| M-Pesa | Bank Transfer (EFT / RTGS) | |
|---|---|---|
| Speed | Instant, 24/7 | Same day (RTGS) or 1-2 days (EFT) |
| Cost for small amounts | Low to moderate per Safaricom tariff | Often higher flat fee |
| Cost for large amounts | Capped fee, but can add up | Often lower percentage cost |
| Requires bank account? | No, works phone to phone | Yes, both parties need accounts |
| Works at night / weekends | Yes, always on | RTGS is business hours only |
| Reversal | Limited, requires Safaricom process | Can be reversed with bank |
| Supplier acceptance | Near universal in Kenya | Required for formal invoices above KES 1M |
| Record keeping | M-Pesa statement + POS record | Bank statement, easier for auditors |
How to choose
Choose M-Pesa if
- Paying a supplier quickly, any time of day or night
- Settling amounts under your daily M-Pesa business limit
- Paying casual workers or drivers without a bank account
Choose Bank Transfer (EFT / RTGS) if
- Paying salaries or large supplier invoices where the bank rate is lower
- Transactions that need a formal bank record for audit purposes
- Amounts that exceed M-Pesa transaction limits
More detail
The crossover point varies by business but most shops use M-Pesa for anything under KES 70,000 and bank transfer above that, purely on cost grounds.
For payroll, a combination works well: bank transfer for salaried staff, M-Pesa for casual workers paid daily or weekly.
Free tools for this
Frequently asked questions
Can I pay suppliers by M-Pesa?
Yes, and most small suppliers prefer it. For large registered suppliers, a bank transfer with a formal invoice is often required for their own accounting.
Which is better for paying staff?
Bank transfer for salaried staff on payroll. M-Pesa for casual workers, riders or anyone without a bank account.
Veira combines POS, M-Pesa, KRA eTIMS and inventory in one app with a free terminal. Book a demo and see how it fits your trade.