M-Pesa mobile banking adds new services in Kenya
Additional services have been added to the M-Pesa mobile banking product in Kenya.Additional services have been added to the M-Pesa mobile banking product in Kenya.
Mobile network operator Safaricom has unveiled the new services, which allow users to make bank deposits, withdraw cash and apply for loans, in conjunction with the Commercial Bank of Africa (CBA).
The new proposition, known as M-Shwari, is aimed at low income earners who are unable to access banking facilities such as credit and savings, reports CIO East Africa.
Free fund transfers between M-Pesa and M-Shwari will be available, while users will also be able to apply for loans of between 100 and 20,000 Kenyan shillings (€0.89 and €177) over a period of 30 days, subject to a facilitation fee of 7.5 per cent.
Isaac Awuondo, group managing director at the CBA, insisted that this charge does not represent interest.
The product has been developed over the past two years and was first introduced to Mr Awuondo five years ago, according to Vodafone's director of financial services Michael Joseph.