Telco giant Safaricom has launched an overdraft service for its M-Pesa platform that will allow customers to send money and pay for goods even when they have low balances.
The overdraft service christened Fuliza or Okoa M-Pesa will incorporate features that will allow customers to borrow as much as Ksh. 50,000 depending on the worth of their businesses. The borrowed amounts will attract an interest of 0.5 per cent per day.
The program, which was launched after a successful pilot programme in November 2018, was a joint venture between Safaricom and lenders CBA and KCB. In order to determine a customer’s overdraft limit, the banks will use algorithms based on M-Pesa transactions.
According to the Telco giant, M-Pesa customers will be able to use the service as many times as possible as long as they remain within their limit. Similarly, the telco revealed that the amounts borrowed will be recovered automatically when a customer’s M-Pesa account is credited with funds.
In 2018, the Telco made a lot of efforts to enhance their mobile money platform service especially since data from the Communication Authority of Kenya cited the Telco as having 24 million active M-Pesa users.
The Telco for instance partnered with DOT Corporation to launch a DOT Braille Watch that allowed visually impaired M-Pesa customers the opportunity to conduct seamless mobile money financial transactions.
Similarly, Safaricom unveiled an interactive artificial intelligence (AI) customer care service dubbed Zuri that will assist Safaricom subscribers in handling M-Pesa reversals among other things. The Telco also launched M-PESA Global; a groundbreaking fresh service that allows anyone from essentially any location in the world to send money to any customer in Kenya.