Safaricom extends the M-pesa overdraft service to Vodacom a sister company in Tanzania. The product will be named ‘Songesha’
Fuliza was first launched in Kenya in January getting instant attention from millions of users within the first three months, underlining the high demand for instant loans in the economy.
It attracts an interest of one percent per day with a facility term of up to 18 days and users can make one request at a time, as long as it is within their overdraw limit, which will be dependent on their M-Pesa transaction score.
Vodacom Tanzania Director of M-Commerce, Epimack Mbeteni said, “We have partnered with TPB bank to make overdraft possible. In order to determine your overdraft limit, the bank will use algorithms based on M-Pesa transactions.”
Plans are underway to introduce Fuliza to six other countries outside Kenya including Tanzania, Lesotho, Ghana, DR Congo and Mozambique.
Safaricom says the creation of Fuliza was informed by data which indicated that millions of transactions were cancelled every day due to insufficient funds.