Airtel and Faulu Kenya Launches Cash Advance Service through Mobile Money
After the death of M-Kesho, Airtel Kenya got the drift and seems to have been looking for the appropriate partner. Now the company has launched what can be a successor to M-Kesho. Questions have been asked about what happened to M-Kesho.
Safaricom still maintains that the service is operational while sources at Equity indicate that the service was discontinued after disagreements on which of the two firms should foot the bill.
The Bharti Airtel owned company in partnership with Faulu Kenya has today launched a service where Airtel Money customers access cash on their mobile phones via Airtel Money.
The service dubbed ‘Faulu Airtel Kopa chapaa Service’ will provide short term credit and emergency advance to Airtel customers repayable in 10 to 30 days.
Mr. Shivan Bhargava, Managing Director, Airtel Kenya said
“Airtel is focused on delivering innovative world-class mobile solutions. This partnership will enable our customers to access cash advances quickly and conveniently. We are delighted to be able to offer our Airtel customers access to quick cash loans through their mobile phones, hopefully taking care of the short term needs that everyone goes through.”
Airtel customers will apply for a loan from their mobile phones by dialing *305# and following the menu to access their loans. Customers must be registered with Airtel money and active users.
Mr. John Mwara, Managing Director, Faulu Deposit Taking Microfinance said
“This innovation when backed by an effective credit reference bureau and mature, will complete mobile banking by ensuring offering of micro deposit mobilization which Faulu already offers through Airtel money at a cost of Kenya shillings Five only (Kes 5/-)and microcredit and hence a full banking solution.”
Airtel money was launched two years ago. The platform offers e-commerce solutions including online payments, online banking, utility bill payments for electricity, DSTV, and water. Airtel Money currently has a dealer network of more than 6,000 agents which include banks, bank agents, supermarket chains and Posta outlets.