M-Pesa to offer cash advances to clients
By Victor Amadala
Safaricom users can now pay for goods and services even when they lack enough funds, piling pressure on conventional banks.
Dubbed Fulisa or Okoa M-Pesa, the overdraft product launched in partnership with Commercial Bank of Africa (CBA) and Kenya Commercial Bank (KCB) allows users to borrow as much as Sh50,000 payable within a month and attracts an interest of 0.5 percent per day, translating to 15 percent per month.
The product uses algorithms based on customer’s M-Pesa transaction to determine the overdraft limit.
Photo courtesy of Scott Mainwaring.