Safaricom has introduced a zero-interest credit service for customers to shop for goods up to Ksh100,000 and pay later.
With the new interest-free product, called Faraja, customers will buy goods and services from as low as Ksh20 to a maximum of Ksh100,000 and pay the same amount without any extra fees witnessed on other credit products. Only the normal M-Pesa transaction charges will apply at the point of sale.
In a statement, Safaricom said, “You will only be required to repay the outstanding facility amount as advanced to you by us (in whole or in part) using the designated Paybill number or such other channels as provided by us from time to time.”
The product which will be bankrolled by Equity Bank is slightly similar to the Lipa Later service currently in the market, although ,the Faraja product will let shoppers walk away with the goods from a list of selected merchants without being required to pay upfront in instalments.
It will work like a digital credit card where a user will have a credit limit of up to Ksh100,000 , depending on their credit score, to make purchases against and then repay at a later date within the 30-day window.
Safaricom offers other products that are similar to Faraja such as, KCB-Mpesa, Mshwari, and Fuliza , a service that allows M-PESA customers to complete their M-PESA transactions when they have insufficient funds in their M-PESA account.