[Kenya] Safaricom rolls out M-Pesa overdraft facility for its customers
Safaricom has now made it possible for M-Pesa users to send money or pay for goods and services even when they have insufficient funds in their accounts after the company rolled out Fuliza to all subscribers on its mobile money platform.
Fuliza is a service that allows M-PESA customers to complete their M-PESA transactions when they have insufficient funds in their M-PESA account. The service has been rolled out to Safaricom’s 24. 2 million M-Pesa customers following a successful pilot programme in November last year.
According to Safaricom, 58% of all daily M-Pesa transactions fail due to insufficient funds. This is what Fuliza overdraft facility aims to solve and will only apply to Lipa Na M-Pesa transactions, i.e. PayBill and Buy Goods. Customers can get overdrafts of as high as Ksh.50,000 depending on the value of their transactions
Customers are required to opt into the service before enjoying the service by simply by dialling *234*0# on USSD and by mid-Jan 2019 on MySafaricom App. Once opted in, M-Pesa customers transacting history on Safaricom products will be used to determine their Fuliza limit. The limit means that the M-PESA wallet now has a backup that can be used whenever a customer has insufficient funds in M-PESA.
Safaricom launched the overdraft facility in partnership with two local banks, KCB and CBA.
The Fuliza overdraft facility is the latest product from Safaricom as it seeks to leverage M-Pesa to generate more revenue. The telco had 24,206,341 active subscriptions on its M-Pesa platform at the end of September, according to industry data by the Communications Authority of Kenya.