Safaricom’s M-Pesa new overdraft feature Fuliza has accumulated more that one million users only eight days after it was launched. The Fuliza feature gives users an opportunity to access overdraft meaning they can still conduct transactions without having exact account balances which they could pay later.
Safaricom’s clients have already borrowed over KSh 1 billion only a week after the new overdraft facility’s launch. “Customers have borrowed more than KSh 1 billion in seven days with an underwriting from Kenya Commercial Bank and Commercial Bank of Africa,” Safaricom CEO Bob Collymore said.
It is understood that the overdraft facility enables customers to send money, pay bills and pay for goods and services when their M-Pesa balances are insufficient to make such transactions. According to Collymore, clients are able to operate on overdraft until they get to their limit determined by an algorithm anchored on their transactions’ value.
Under this feature, customers pay access fee of 1% and charged maintenance fee cost of between KSh 2 and KSh 30 each day the overdraft wallet remains overdrawn. Customers are deducted the overdrawn amount immediately they get an inflow in their M-Pesa account.
Fuliza has opened customers to additional benefits beyond that of M-Shwari’s credit feature launched in 2012 having over 25 million customers.