M-Pesa to turn into a Bank as Safaricom Launch M-Shwari Tomorrow

Posted In Business, Mobile Mtaa - By robertalai On Monday, November 26th, 2012 With 2 Comments

Safaricom is planning to further its goal of financial inclusion by launching a mobile money based credit scheme. The mobile services provider will be launching a service called M-Shwari which, from the explanations, look like a replacement to M-Kesho (done in partnership with Equity Bank).

According to an insider at Safaricom, “M-Shwari is an enhancement of M-Kesho.”

The service  is not only a credit scheme but also a savings scheme according to an insider at Safaricom. The service is a partnership between Safaricom and CBA where users will save a minimum of Ksh 10 to be able to enjoy credit facilities from the service. The users will be able to gain credit after a minimum of 6 months usage. The credit facilities will be accorded to the users who will met some minimum conditions during the 6-months usage. It will also vary on the usage of the service.

I have just been informed that a saving of between Ksh 10 – 10,000 will attract an interest of up to 2% (not clear if it is per year or per month).

This move might scare banks with many which have feared that M-Pesa is replacing banks. Banks have previously called for the regulation and control of what can be done of M-Pesa citing reasons as flimsy as that “M-Pesa is unsafe.”

Let’s wait for the launch tomorrow and get the details.

About - Robert is an African Tech Blogger, Critic, Net Evangelist, Speaker, Mentor for Young Boys and Girls, Editor @TechMtaa and likes to Provide Sanitary Towels To Poor Women through the DishAPad Initiative

  • capaldi

    With the emergence of new mobile rates especially from Airtel, most Kenyans planned to ditch Safcom and they were not going to ditch it without any beef. Most former Safcom subscribers Okoad jahazi, fleeced the 100/= bob and throwed away the SIM cards. Now with the entry of this M-Shwari, schemers are gonna spring up, borrow the max 100,000/= and ditch Safcom! Now translate that to the number of subscribers. Safcom can go down that fast lane. Kenyans are the definition of schemers I tell you.

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