Safaricom has rolled out Fuliza, an innovative product that allows its M-Pesa customers to send money or pay for goods and services when they have insufficient funds in their accounts. Based on research by the firm, 58% of all its daily transactions fail due to insufficient funds and Fuliza therefore comes in handy in addressing that challenge.
In essence, Fuliza is an overdraft facility which allows M-Pesa customers to access as much as Kshs.50, 000 depending on the value of their transactions. Once a customer signs up for Fuliza, in the event that he or she attempts to make a transaction and the balance is insufficient, the overdraft will automatically be applied. The transaction will be seamless.
Fuliza has been rolled out in partnership with two leading commercial banks – KCB and CBA – with a repayment date of up to 90 days. Unlike short term loan products like M-Shwari that have a fixed monthly facility fee based on the amount borrowed, Fuliza attracts a facility fee of 0.5% per day on the outstanding balance.