Fuliza M-PESA service allows M-Pesa customers to complete a Buy Goods or Send Money transaction when they have insufficient funds. Many times, a customer would want to send money to a Paybill or Till number only to find out that they do not have enough money on their M-Pesa account. The new service allows you to borrow money from Safaricom, complete the transaction and repay the amount borrowed within thirty days.
This, however, is not a loan facility like M-Shwari. That means you only repay the amount of money borrowed without any interest. In case of defaulting on payments, you will not be able to use the Fuliza service anymore.
Requirements for using the service
The Fuliza M-Pesa service is only available to Safaricom customers who have M-Pesa accounts. To be abale to use it, you have to register by dialing *234# then Fuliza M-PESA and select Opt-In. Once ou have opted-in, you can use the same process to check your awarded limit, the balance, get a mini-statement or opt-out of the service.
Safaricom will review the limits they allow you every three months. Your usage history will play a big role in this review. Depending on your awarded limit, you can use the service as many times as possible. The service will also work automatically in case you don’t have sufficient funds on your M-PESA, it is therefore wise to check your Fuliza account every now and then.
Why the Fuliza M-PESA is godsend
- The first advantage of Fuliza M-PESA is that it is not a loan facility, therefore you will not have to pay any interest on it.
- Secondly, you can have access to up to KES 70,000 every thirty days depending on your awarded limit.
- You can reverse any monies sent via M-PESA on the service in case of incorrect transactions.
- You will not access the Fuliza service in case of default, but immediately your debt is fully repaid you can still use the service. There are not penalties but you should probably think of how this will affect your limits.
Downside of the service
- While it is not being treated as a loan facility, Fuliza-MPESA debt attracts a daily fee of 0.5 percent.
- You cannot withdraw money gotten through the service as you would from your own M-PESA account.
- You will be charged a 1.0 percent access fee to use the service.
Below is the table showing the charges on outstanding balances when one uses Fuliza M-PESA.
As at January 18, 2019 just 7 days after the launch of the product, Safaricom had lent over KES 1 billion shillings to M-PESA users. This proves that the company continues to be one of the most innovative and positions M-PESA as one of the most important products in the Kenyan economy.
UPDATE: It occurs that when you send someone money, and that person has a Fuliza debt, then what happens is that Fuliza takes its share and gives the recipient the remainder. For instance, if you send KES 5,000 via MPESA and the recipient has a Fuliza debt of KES 2,000, the recipient will receive KES 3,000 as the deduction is automatic. It seems Safaricom had not foreseen this, or if they had, then they thought it wise to themselves not to disclose to users.