Fuliza is an M-Pesa overdraft that allows M-Pesa customers to pay for goods and services, and send cash beyond their M-Pesa balance.
~ Report by Deloitte says most Kenyans with Fuliza regret opting into Fuliza.
~ Fuliza charges 1.083% daily as interest rate, and 395.2% annualised rate.
Most Kenyans who have opted into Safaricom’s overdraft service, Fuliza, regret doing so according to a report released by Deloitte and DataEQ.
According to the report, most of those who take up Fuliza regret the debt burden that comes with the service. The report says it pegged its conclusion on the premises mined from Twitter conversations.
Loans taken from Fuliza are automatically deducted from one’s M-Pesa as soon as cash lands making it difficult for people to default. The interest on Fuliza is charged on a daily basis.
Fuliza charges 1.083 percent daily as an interest rate with an annualized rate of 395.2 percent with the majority of respondents deeming it the highest rate in the country.
At the same time, some who took to social media platforms such as Twitter, according to Deloitte, complained of low loan limit that sometimes comes with high-interest rates.
“Other consumers complained that their limits were too low and wondered whether Safaricom trusted them to pay the short-term loans with higher interest rates,” read part of the report.
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Fuliza allows M-Pesa customers to pay for goods and services beyond their M-Pesa balance. Kenyans, however, found a way of having cash by “fulizaring” to another number and then withdrawing at an M-Pesa agent.
The report says they tracked over 330,000 Twitter posts on various loan provisions in the country and that M-Pesa and Fuliza dominated the conversation.
There were Kenyans who felt the service was of convenience and that it helped them out of difficult situations that included paying for products and services, as well as sending cash to family and friends.
Since its launch, Fuliza has played a major role, with the help of M-Pesa in increasing revenue for both Safaricom and NCBA Bank.
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