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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
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 impact 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.
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Faraja is a partnership between EDOMx Ltd, a Kenya-based financial technology firm, and Safaricom. 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. The Central Bank of Kenya gave EDOMx the nod to launch the product after it was cleared as a digital credit provider in March.
