In an investment report released last week, analysts at Sterling Capital Ltd said Fuliza would cement Safaricom’s lead in the digital payments sector, while at the same time clawing market share in other traditional lending markets. “Fuliza will have a positive impact on M-Pesa transactional volumes, revenues, customer acquisition as well as retention,” said the firm. Like its other mobile lending products like M-Shwari and KCB M-Pesa, Fuliza is run in partnership with the KCB Group and Commercial Bank of Africa (CBA) using algorithms from M-Pesa’s transactional data to determine loan limits for users. “We estimate that Sh2.2 billion would be generated in revenue through the 1.08 per cent access fees and Sh3.1 billion through maintenance fees,” explained the investment firm. A further Sh2.1 billion is expected to accrue to Safaricom from the 40 per cent revenue share.

Source: Standard Digital March 03, 2019 21:04 UTC