Safaricom recently launched an innovative new service that gives M-PESA customers access to quick and easy credit for their purchases.
The service, dubbed Faraja, allows M-PESA users to shop at various retail stores and pay later through M-PESA without any interest charges. Read on to learn more about how Faraja works and how you can start enjoying the benefits today.
What is Faraja?
Faraja allows M-PESA users to buy goods and services up to KES 100,000 on credit and repay the amount within 30 days interest-free. It essentially acts as a 30-day credit facility linked to your M-PESA account.
To use Faraja, you simply check out at a participating store via Lipa Na M-PESA. The purchase amount is deducted from your allocated Faraja credit limit instead of your M-PESA balance. You then have a month to repay Faraja before the due date. No interest, fees or penalties apply.
Faraja credit works seamlessly through a mini-app within the M-PESA super app. Alternatively, you can dial *799# to access the service via USSD. The service is available 24/7 so you can shop anytime, anywhere.
How Can Customers Register for Faraja?
Registration is quick and straightforward via two methods:
Faraja Mini-App within M-PESA Super App
Launch the M-PESA super app and navigate to the Faraja mini-app. Provide your personal details including ID number and consent to necessary information sharing. Receive your provisional credit limit instantly.
USSD by dialing *799#
Dial *799# on your Safaricom line and follow the prompts to register. You will need to provide personal details and give consent to share info. Once registered, you can start enjoying Faraja.
To be eligible, you need an active M-PESA account for at least 6 months and be over 18 years old. Faraja leverages your M-PESA transaction history to determine your creditworthiness.
You can register a maximum of two M-PESA lines for Faraja. The credit limit and terms are linked to your individual line.
What are the Key Conditions and Terms?
– You must repay any credit in full within 30 days or by the due date communicated. No rollovers allowed.
– No interest, fees or charges apply but standard M-PESA rates apply to transactions.
– Your credit limit may be lowered or access suspended if repayment is delayed beyond due date.
– Faraja can take measures to recover any overdue amounts including engaging debt collectors.
– You may not cancel registration if you have outstanding Faraja credit. Cancellation closes access to further credit.
– Faraja will share your personal information like ID number and usage data with banks, credit bureaus and other third parties to provide and administer the service.
– Your credit limit is determined by a credit score calculated based on your Faraja usage and other external data. Good credit behaviour can increase your limit.
– You can only transact with approved merchants. You remain liable for repayment even if merchant defaults.
– Faraja Terms & Conditions, limits and eligible merchants can be changed by Safaricom without notice. Always review latest terms.
How Can Businesses and Merchants Register?
If you run a business that accepts M-PESA, you can also partner with Faraja. By registering, you allow customers to pay for your goods/services via Faraja credit. The benefit is receiving full payment upfront even as the customer pays later.
To sign up, contact Safaricom directly if you are already Lipa Na M-PESA activated. Share required documents and onboarding will commence.