Safaricom and EDOMx have partnered to launch Faraja, a service that will enable over 32 million customers a chance to buy goods on credit from over 600,000 businesses on Lipa Na M-PESA platform.
Faraja enables customers to make purchases of between Kes20 and Kes100,000 at zero interest fees and complete the payment within 30 days.
Safaricom will enable EDOMx to offer the Faraja service to more than 606,000 businesses on Lipa Na M-PESA at a negotiated facility fee payable by the business.
“Our eyes are on the global market because innovative concepts such as Faraja will go a long way in encouraging creativity in the digital financial sector,” said Julian Kyula, CEO, EDOMx.
Customers can access Faraja service by dialling *799# to opt-in or make a payment, or by selecting the Faraja mini-app on the M-PESA Super App. In addition, customers can purchase multiple items simultaneously under Faraja as long as they are within their assigned credit limits.
“We continue to innovate M-PESA to empower business owners with different tools and solutions to run their businesses better and to faster grow their firms,” said Peter Ndegwa, CEO, Safaricom.
Make payments later
Faraja seeks to enable business owners to grow their sales and business by enabling their customers to make a purchase at the point of need and then make payments later.
Businesses on Lipa Na M-PESA can opt into Faraja through the Faraja portal at farajacredit.com or by contacting EDOMx.
Currently, the service is available across all Naivas outlets, Goodlife pharmacies, and City Walk amongst other merchants.
Businesses on Faraja will receive payment in full for a product or service immediately after a customer makes a payment through the service. EDOMx will extend credit to businesses on the solution enabling them to receive payments immediately after a customer makes a purchase on Faraja.