Pesa Pata is a scratch card micro credit startup serving ordinary Kenyans through a network of local shops stocked with Pesa Pata scratch cards.
Giving loans of around Ksh 5000 or below, for one to borrow, they will need to get a Pesa Pata scratch card from a Pesa Pata agent of whatever denomination.
The borrower then scratches the card to reveal a PIN. The agent then sends a message to ‘222*followed by the PIN to 0707 000 222. The required amount is then credited to the customers MPESA account.
The agent gets a commission on every sale while the customer repays the loan at an interest rate less than 10% interest rate.
Though fast and simple and issued on trust between agent and customer, Pesa Pata quick loans also require collateral before they are issued. The agents also pay for the scratch cards.
Pesa Pata saves the pain of queues in banking institutions and cat as emergency estate loans and are suitable for the marginalised or unbanked. The founder, Joyce Wangui, director Paddy Micro Investments, a micro-finance institution says Pesa Pata aims at the low-income bracket who might not qualify to get loans in banks and those who need quick cash to solve a need.
Pesa Pata might face stiff competition due to Safaricom’s introduction of Mshari, a service that helps low-income mobile users save and borrow from their mobile phones.