Users of Safaricom’s overdraft service Fuliza can now withdraw cash directly from M-Pesa dealership stores, unlike the previous model where the service was limited to payments.
A random check by Business Daily revealed that customers could withdraw funds equal to their Fuliza limits minus normal transaction fees as if they had actual funds in their M-Pesa wallets.
For example, a customer with an overdraft limit of Sh500 can go to an M-Pesa agent with a zero balance and withdraw Sh473 as there is a withdrawal fee of Sh27.
Since its launch in 2019, Fuliza has only allowed users to pay using the cashier and billing number, as well as send money to other M-Pesa customers when they don’t have enough funds in their wallets.
Development is moving the facility to a credit scheme, although the telco insists it is not, arguing that it is different from products such as KCB M-Pesa and M-Shwari.
Just over a month ago, the government launched a lending facility to support small merchants through the much-publicized Hustler Fund, signaling Safaricom’s renewed efforts to wean itself off mobile lending competition.
Christopher Mwangi, a user of the facility who works as a clerk at property developer Mahiga Homes Limited, believes the move is timely as the bank has reintroduced mobile banking fees.
He said customers would save costs if they paid for goods using bank payment numbers. “I think it’s better to use cash now with the reintroduction of transaction fees on mobile banking. Some providers have even canceled their bank statements, so being able to remove the Fuliza limit is a timely move,” he said.
Underwritten by lenders NCBA Group and KCB Group, Fuliza has grown into a popular service since its launch, with borrowing volumes growing steadily over the years.
