Commercial Bank of Africa has partnered with Safaricom to launch an overdraft product for mobile money service, M-Pesa.
The service, Fuliza will add to the existing 30-day term loan, M-Shwari enabling mobile money customers to complete transactions that would have otherwise failed due to insufficient funds.
The rate of failed mobile money transactions performed daily due to insufficient funds currently stands at 58 per cent, according to M-Pesa data.
Under the service, a customer will complete a Lipa na M-Pesa transaction (Buy goods and Pay bill) when value is greater than their M-Pesa wallet balance for an access fee of 0.5 per cent.
A maintenance fee charged in a day will be applied everyday after such transaction is made. Whenever you receive an inflow into your M-PESA wallet, the overdrawn position is regularized. During this period that your M-PESA wallet is overdrawn, one shall still have access to their M-Shwari limit.
“This collaboration aims to drive financial inclusion in a digital economy. With technological innovation and responsible lending principles, it will bring more people into the financial system, encourage more transactions, more savings and achieve stronger economic growth,” CBA Group managing director Isaac Awuondo said.
The service is available by subscription to *234# even for non-existing M-Shwari customer.