Safaricom has introduced a new service which will enable users to send money or pay using the mobile money transfer service with insufficient balances following the launch of overdrafts.
The company effectively trialled the overdraft service in November last year, leading to the launch to 24.2mn customers.
The facility has been called Fuliza or Okoa M-Pesa, and will allow users to borrow up to Sh50,000 (US$490.71).
Safaricom collaborated with the Kenya Commercial Bank (KCB) and the Commercial Bank of Africa (CBA) in order to launch the service.
The banks will use algorithms based on transactions on M-Pesa to control each user’s overdraft limit. The overdraft service can be used fre, as long as customers is in their granted limit.