NAIROBI, Kenya, Jan 18 – A new feature on M-Pesa dubbed Fuliza that allows users access an overdraft facility has garnered one million users eight days after its launch.
Safaricom Chief Executive Bob Collymore told Reuters that customers have borrowed over a billion shillings over 7 days with underwriting from Commercial Bank of Africa and KCB Group.
Fuliza enables M-Pesa customers to send or complete mobile payment transactions even if the M-Pesa balance is below the required amount.
Collymore said users can draw down the overdraft facility until they reach their limit which is determined by an algorithm.
Customers are charged an access fee of 1 percent and a maintenance fee of between Sh2 and Sh30 per each day that the wallet remains overdrawn.
Whenever customers receive an inflow into their M-PESA wallet, the overdrawn position is deducted.
Fuliza complements the M-Pesa’s mobile credit feature, M-Shwari, which was introduced in 2012 and has over 25 million customers.