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.