Safaricom introduces overdrafts to M-Pesa

By professo

The Kenyan telecommunications company, Safaricom, has announced an additional feature introduced to M-Pesa.

Customers will now be able to send money or pay using the mobile money transfer service with insufficient balances following the launch of overdrafts.

The company successfully trialled the overdraft service in November last year, leading to the launch to 24.2mn customers.

The facility has been named Fuliza or Okoa M-Pesa, and will enable users to borrow up to Sh50,000 (US$490.71). The overdraft carries interest of 0.5% per day.

SEE ALSO:

Safaricom partnered with the Kenya Commercial Bank (KCB) and the Commercial Bank of Africa (CBA) in order to establish the service, Kahawa Tungu reported.

The banks will use algorithms based on transactions on M-Pesa to determine each user’s overdraft limit.

The overdraft service can be used as often as required, as long as customers stay within their granted limit.

Mobile commerce transactions hit 526.9mn in Kenta between July and September of last year, totalling Sh1.55trn (US$15.2bn), whilst person-to-person transactions hit Sh2trn (US$19.7bn) during the review period.

The nation’s mobile phone penetration currently sits at 100.1%, with some Kenyans owning more than one sim card.

Share

Featured Articles

Middle East GDP hike of 57% if more women join workforce

By tapping into the potential of next-generation female workers, the MENA region could unlock new economic opportunities, up to US$2 trillion, reports PwC

Dialight supplies LED solutions for industrial safety

Reliance on inefficient lighting technologies are not only harmful to the environment, but also increase injury risk and cost

Top 10: Tech, AI, cloud, cyber speakers at TECH LIVE LONDON

TECH LIVE LONDON events sees technology leaders from IBM, Oracle, Vodafone, JP Morgan, Accenture and the US Space Force among the inspirational speakers

Cyber LIVE adds Vodafone head of cyber Kawalec to line-up

Leadership & Strategy

Musk’s multibillion hostile Twitter takeover – the timeline

Leadership & Strategy

Sustainable moves businesses can make to win customers, IBM

Sustainability