By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Newsunplug KenyaNewsunplug KenyaNewsunplug Kenya
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Reading: Safaricom unveils Sh100,000 interest-free M-Pesa loans
Share
Notification Show More
Font ResizerAa
Newsunplug KenyaNewsunplug Kenya
Font ResizerAa
  • News
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Newsunplug Kenya > Blog > Business > Safaricom unveils Sh100,000 interest-free M-Pesa loans
Business

Safaricom unveils Sh100,000 interest-free M-Pesa loans

hallanaija
Last updated: July 27, 2023 10:08 am
hallanaija
2 years ago
Share
Safaricom
Safaricom PLC Chief Executive Officer (CEO), Peter Ndegwa at a past event. FILE PHOTO | POOL
SHARE

Safaricom has finally unveiled the zero-interest credit service for the purchase of goods for up to Sh100,000 which had initially been blocked by the financial regulator.

Dubbed Faraja, the credit service is expected to ruffle the ubiquitous mobile loans market that has been dominated by such products as Fuliza, a mobile overdraft service also on M-Pesa.

The service will enable more than 32 million Safaricom’s customers to buy on credit from businesses on the telco’s Lipa Na M-pesa.

Customers will be able to make purchases of between Sh20 and Sh100,000 at zero interest fees and complete the payment within 30 days.

“Many businesses lose out on sales when a customer would like to make a purchase but lacks money at that point. We are glad to partner with EDOMx to offer Faraja empowering any business to grow their sales by enabling their customers to buy now and pay later,” said Peter Ndegwa, the CEO of Safaricom.

“In researching the global merchant and consumer industry, it was evident there is a substantial digital community that will appreciate our product offering including our zero interest initiative, plus much more in enhancing loyalty and customer-focused programs,” said Julian Kyula, CEO, EDOMx.

READ MORE  Stronger dollar to cost Kenyans at the pump

Faraja is a partnership between EDOMx Ltd, a Kenya-based financial technology firm, and Safaricom.

Safaricom
Safaricom PLC Chief Executive Officer (CEO), Peter Ndegwa at a past event. FILE PHOTO | POOL

Currently, the service is available across all Naivas Supermarket outlets, Goodlife pharmacies, and City Walk amongst other merchants.

Businesses on Faraja will receive payment in full for a product or service immediately after a customer makes a payment through the service.

Safaricom, which is listed at the Nairobi Securities Exchange (NSE), will enable EDOMx to offer the Faraja service to more than 606,000 businesses on Lipa Na M-PESA at a negotiated facility fee payable by the business.

EDOMx will extend credit to businesses on the solution enabling them to receive payments immediately when a customer purchases Faraja.

The Central Bank of Kenya gave EDOMx the nod to launch the product after it was cleared as a digital credit provider in March.

This was under regulations published last year that allow the central bank to regulate fintech to rein in predatory lending and violation of consumer privacy.

Truckers to downsize, hike charges on taxes
Base Titanium to take hit on depletion of Kwale minefield
Telkom pensioners set for pay after 12-year fight
KenGen reveals a ten-year strategy to boost green energy.
Kenya records lowest inflation rate in 14 months
Share This Article
Facebook Email Print
Previous Article tax bill State to backdate new taxes should court lift freeze order
Next Article Safaricom Safaricom eyes two million M-Pesa clients in Ethiopia by March
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

about us

We influence 20 million users and is the number one business and technology news network on the planet.

Recent Posts

  • Paul Pogba’s Stunning Barcelona Return Under Hansi Flick Sends Fans into Frenzy
  • OFFICIAL: Rodrygo Joins PSG This Summer, Ignoring Manchester City and Liverpool Offers — Secret Clause Backed by Al-Khelaïfi Set to Shock the World in 3 Days
  • OCS Talaam arrested over Albert Ojwang’s murder
  • Top Iranian generals killed in Israeli attack
  • DP Kindiki: Kenya’s Mr money bags splashing nearly Ksh.100M a week

Recent Comments

No comments to show.
Newsunplug KenyaNewsunplug Kenya
© Newsunplug Kenya. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?