Visa, the payments technology company, and Nairobi mobile-based money lender Branch International have announced a partnership under which the latter will offer financing to merchants who accept payment via Visa. Loans will be disbursed directly to the merchants’ phones.
“We are happy to work with Branch to offer seamless access to finance through our Visa network, as they seek to provide micro-credit facilities to merchants across Kenya.” said Visa General Manager for East Africa, Sunny Walia.
The eligible merchants will be able to access loans of up to KSh30, 000 ($300) which can be repaid within 6 months.
However, the two firms did not reveal the interest rates to be charged on the facility.
The partnership comes at a time when Central Bank of Kenya (CBK) governor Dr Patrick Njoroge has been increasingly advocating for the regularisation of such mobile based lenders, saying they have been exploiting the man on the street given the exorbitant interest rates charged on loans disbursed through the platforms.
