Safaricom and EDOMx, a Kenya-based fintech, have joined forces to Buy Now Pay Later service dubbed “Faraja” following approval from the Central Bank of Kenya. With the partnership, over 32 million Safaricom customers can now buy products and services on credit through Lipa Na M-PESA, the popular mobile money platform in Kenya. Faraja allows users to make purchases ranging from KSh. 20 to KSh. 100,000 with zero interest fees and a 30-day payment period.
EDOMx, the owner of the Faraja product, was among the first digital credit providers to be cleared by the Central Bank of Kenya in March. These regulations were implemented to regulate fintech companies, protect consumers from predatory lending, and safeguard their privacy.
Before approving the product, the Central Bank laid stringent conditions, including clear features and terms, fee transparency, and risk mitigation strategies, ensured the product’s viability and adherence to statutory and prudential requirements.
Faraja’s aims to provide customers with greater purchasing power and flexibility by allowing them to acquire goods and services when needed and pay later without incurring interest charges. On the other hand, Faraja enables businesses to increase sales and grow their ventures by removing the barrier of immediate payment. Safaricom also noted that it will enable over 606,000 businesses on Lipa Na M-PESA to access the Faraja service at a negotiated facility fee.
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