MTN Uganda has partnered with Kenya’s NCBA Group PLC to introduce an overdraft facility via MTN Mobile Money.
MTN Uganda has partnered with Kenya’s NCBA Group PLC to introduce an overdraft facility via MTN Mobile Money. Dubbed MoMoAdvance, the facility will allow customers pre-authorization of transactions for payment to be made later.
According to the telecom, users will be charged an access fee of 2.75 percent of the amount borrowed and a daily interest of 0.5 percent on the outstanding balance for a maximum of 45 days.
“MTN MoMoAdvance is a product that we have been working on for some time with our partners from NCBA Bank. We are happy to finally roll it out to all our customers and we believe that it will give them the convenience to transact seamlessly beyond their wallet balances during times of need then pay back later,” Stephen Mutana, the General Manager MTN Mobile Financial Services said.
MTN Uganda says the MoMoAdvance is not a loan facility.
“Unlike the MoKash loan facility where MTN customers can borrow money within their credit limits and payback in 30 days as they wish, MoMoAdvance on the other hand is an overdraft facility that allows customers to use more money than they actually have on their accounts, and the overdraft amount is automatically deducted the next time a customer gets funds on their MoMo account,” adds Mr. Mutana.
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