Last updated: July 25th, 2019.
The innovative facility which is termed, ‘Songesha’ allows M-Pesa customers to complete their transactions when they have insufficient funds in their accounts.
In remarks during the launch, Vodacom’s Director of M-Commerce, Epimarck Mbeteni said with the introduction of the overdraft service, M-Pesa customers can now use the platform with ease and confidence because they have instant access to credit to enables them make money transfers, remit bills, purchase from merchants.
“Our desire to spur innovative mobile finance led us to keenly take note of our customers’ repeated transactional hurdles due to shortage of funds in their wallets which inspired us to respond with an innovative solution – an overdraft facility that enables the customer to complete M-Pesa transactions,” Mbeteni said.
Songesha is one amongst other M-commerce innovations rolled out this year which have enabled Vodacom to maintain market leadership in mobile and financial services in transaction volumes, market share and subscribers.
According to Tanzania Communications Regulatory Authority’s quarterly report for the year ended March 2019, M-Pesa increased its market share by 40 percent and advanced financial inclusion to over nine million subscribers who transact more than 4.1trn/- a month.
“The overdraft attracts an interest of 1percent per day with a facility term of up to 18 days and users can make one request at a time, as long as it is within their overdraw limit, which will be dependent on their M-Pesa transaction score,” the M-Commerce Directed added.
In his remarks on behalf of TPB, acting CEO, Moses Manyatta said the bank is promoting financial inclusion and empowering Tanzanians by helping them develop a saving culture and access to credit which is what Songesha is all about.
“With 24/7 access to credit via your phone, we are very proud of this partnership and optimistic about the revolution this will bring in digital finance,” Manyatta said.
Vodacom M-Pesa will automatically deduct the amount due from funds deposited or received into a user’s M-Pesa wallet until the overdraft is cleared in full.