exactly. Overdraw facilities will be decided on a number of consumer factors and transaction history. This may work like Tunukiwa/ Advantage Plus plans which are customized to one’s use.
Inamake sense. i already know someone who told me not to send them money through mpesa. Na alinipigia simu na line ya airtel kuniambia hivyo
Kwa hii list ongeza showmax na little cab
My understanding is that safaricom is just a platform, and derive revenue from charging a commission for the service just like they do in Mpesa. The actual money advanced is from CBA.
Remember that CBA is the Mpesa bank. That is where the actual cash for mpesa float is held, while you and the mpesa agents hold virtual value. With safaricom having in excess of 150,000 active agents and assuming each agent has a minimum 10,000/- every day in float held by CBA, we are talking of a cool 1.5B in client deposits that can be lent at a profit for the short term.
We all know who the beneficially is, and whose money is being used.
I also understand that fuliza does not advance cash rather only clears paybill payments. Those are additional commissions. Fuliza appears designed to finally lock out all the other mobile money lenders.
About customers migrating to other networks, this is a classic case of the proverbial hyena waiting for the swinging arm to fall off and have a free meal, why, no one is prevented from operating more than one safaricom line. One for Fuliza, and others for Mpesa.
Hata sikujua Showmax ni yao
Evidence hapa already
I foresee a time when many people will be telling you not to send them money via Mpesa. Wait and see. This is a classic blunder. The average Kenyan doesn’t like paying debts if you don’t have collateral against them. Mark my words.
Showmax is owned by Naspers, the same owners of Multichoice and Little Cab is owned by Craft Silicon. Last I checked Little Cab is doing quite well.
What collateral does Mshwari have? Getting listed on CRB maybe! Fuliza will be a poor man’s credit card and they will have to maintain it so as not to borrow from relatives who will obviously label you as a broke-ass. The rationale is unless you want free money nobody will be willing to lend since the payday channels and access to cheap credit is increasing by the day. You borrow me money and I take you through a step to step on how to set up your credit access accounts
Uko na point umedinya .I’ve used it and I find it an inconvenience because of the fact that I can’t use Mpesa until I have paid it off .Nililipa and I’m not using it again .
Your everyday user or just me:
Bills paid via MPESA - Kenya Power, Supermarket (*rarely), Telkom Airtime
Other transactions - Send, Recieve, Withdraw
Fuliza only supports Lipa na MPESA and buy goods transactions so my thoughts would be that this service is tailored for cashflow “kings” as pointed out earlier. So NO, the exit of a few customers won’t hurt CBA, MPESA or even Safaricom in any huge way.
It is upon us to contest their market dominance of which I would say has really messed up the competition. Interestingly, GoK owns a whooping 35% of Safaricom so just know an antitrust lawsuit wouldn’t fly.
Wikipedia tells me Microsoft “brushed it off” with only a consent decree and a $794 million fine as the final resolve.
*I prefer paying cash at the till for whatever reasons…
This thing is already an unprecedented success… What are guts on about
How has it messed up competition. If there’s any competition left in Kenya, it’s in the telecommunications industry.
Wow!. interest is [SIZE=5][COLOR=rgb(226, 80, 65)]0.5% per day[/SIZE] on the outstanding balance which is equal to 182% per year!! . These mobile lending platforms zitakamua watu proper. Such high interest rates will lead to defaults which is a boon for the economy. Mimi naona shida in the next 5 years.
Here’s some data overload for you:
“Safaricom is the leading telecommunications service provider in Kenya, controlling 64.2 percent of the market as at December 2018”
“A company, brand, product, or service that has a combined market share exceeding 60% most probably has market power and market dominance.”
“A firm is in a dominant position if it has the ability to behave independently of its competitors, customers, suppliers and, ultimately, the final consumer.”
There’s competition yes, but mostly among the “small” players i.e. Airtel Ke, Faiba and Telkom. Mobile money transfer seems to have hit a wall for very many of these players simply because MPESA got big first.
It’s basic economics that market dominance will strifle real competition.
*Yes, I have a Wikipedia tab open…
Seems you don’t understand what innovation or competition is. Without innovation, Safaricom wouldn’t be where it is and that was brought about by competition. In fact Safaricom does it so well that it has forced banks like Equity to venture into the telecommunications industry and Safaricom is trying to counter that with Fuliza, that’s real competition sio chenye Airtel wanafanya. If you want to complain, look at KPLC and see the effects of zero competition.
Very good observation.expect such 'usinirushie kwa mpesa ’ lines and they will be in plenty
Okay, internet person.
M2Random? who are you? You mean to say you arrived at this line of thought purely by conjecture? The finance bill is set do undergo some serious surgery coz of the implications ‘collateral less’ lending is posing by way of mobile lending. Default of these ‘loans’ doesn’t carry any serious negative consequence except of course if you are one afraid of the CRB! On Fuliza, you’re spot on, it’s something like the R&D at Saf is focused on relevance by introducing new products periodically, hence coming up with a bull idea like Fuliza. Saf has to get that they CANNOT compete with conventional financial intermediaries, they’ll lose badly.
Don’t forget Mpesa is the spine of Saf biz. Not voice, frankly if voice was key, market share ya Saf ingekuwa to the 25% range, just take a segment look on voice market share alone.