Use Paystack Kenya (with M-Pesa channel): when you need card + M-Pesa + bank transfer in one integration, when you prefer a unified dashboard and settlement, when developer simplicity matters more than fee optimization. Use M-Pesa Daraja directly: when you need C2B registration (permanent M-Pesa paybill/till number), B2C payouts (disbursements to M-Pesa wallets), lower per-transaction fees at high volume, or when you need more granular control over the STK push flow. Both are valid production choices — the majority of Kenyan businesses that are not Safaricom partners use Paystack.
| Feature | Paystack Kenya | M-Pesa Daraja Direct |
|---|---|---|
| STK push (C2B) | Yes — handled automatically when mobile_money channel selected | Yes — you manage OAuth, password, STK push directly |
| Card acceptance | Yes — Visa, Mastercard | No — M-Pesa only |
| Bank transfer | Yes (Kenyan banks) | No |
| B2C payouts (M-Pesa wallet) | No — bank account payouts only via Transfer API | Yes — B2C API sends to M-Pesa wallets directly |
| C2B registration (till/paybill) | No | Yes — register your paybill/till for push payments |
| Integration complexity | Low — same as Paystack Nigeria integration | High — OAuth token, Base64 password, STK push, callbacks |
| Dashboard | Paystack dashboard — transactions, settlements, refunds | Safaricom developer portal + your own reporting |
| Settlement | Paystack settles to your bank account (T+2) | Direct settlement to your M-Pesa or bank account |
| Fees | Paystack's standard rate (1.5% + KES cap) | Safaricom M-Pesa fees (lower % at high volume) |
See choosing a payment gateway: engineering decision framework for the broader gateway selection criteria.
KES 2,999
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