Mpesa users will be able to send money from their account, even when they do not have enough or have nothing at all.
This is after the telco launched an overdraft facility for its customers dubbed Fuliza or Okoa M-pesa, borrowed from its sister service of Okoa Jahazi that enables users to borrow airtime.
Through the new service, the users will be able to borrow as high as Ksh50,000, which attracts an intrest of 0.5 per cent per day.
The service was launched in conjunction with the Kenya Commercial Bank (KCB) and the Commercial Bank of Africa (CBA). In order to determine your overdraft limit, the banks will use algorithms based on Mpesa transactions.
The limit will be reviewes every three months, depending on the usage. Customers will be able to use Fuliza as many times as possible, so long as they remain within their limit.
To repay, any funds received or deposited in your M-PESA account will automatically be used to clear your outstanding Fuliza overdraft.
The institutions will leverage on the increasing mobile money use, with industry data showing that Kenyans transacted as high as Ksh2 trillion for three months in the period ending September 2018.
The country, in the period between July and September 2018, recorded a total of 730.2 million transactions valued at KSh2.027 trillion.
Mobile commerce transactions hit the 526.9 million mark valued at Ksh1.5 5 trillion while person-to-person transfers were valued at KSh718.2 billion. This indicated an increased uptake of mobile money technology for commercial purposes.
Currently, Safaricom enjoys a customer base of 24 million active Mpesa users, according to the latest report by the Communication Authority of Kenya (CA).
Currently, the mobile phone penetration is at more than 100.1 per cent, owing to the fact of more than one sim card ownership by one person.
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