M-Pesa makes finance more inclusive
Vodacash is launching a new addition to the fintech service M-Pesa to give subscribers in the Democratic Republic of Congo (DRC) vital assistance over their cash flow. The new Rallonge offering is aimed at M-Pesa users with little or no balance who could use an instant overdraft in order to cover a transaction. Vodacom’s primary intervention is to help its subscribers send money without being stung by withdrawal fees.
Other situations from which the Vodacom finance experts want to save their customers include buying personal credit, buying new phone packages for themselves and shopping for consumer products. In a classic symptom of the digital age, a major problem that Vodacom has identified among the population is the need to finance repeat subscription to cable channels. One of the problems experienced by consumers in the DRC is that channels like Canal+, Startimes, Easy TV and Bleusat, only accept payment in dollars.
It is a fairly exclusive offer. Only customers with an active premium account who make regular transactions via M-Pesa will be eligible. The overdraft is currently only available in Congolese francs and its limit ranges from 50 to 100 thousand FC, subject to interest charges and penalties for violating the terms and conditions. “M-Pesa continues to provide the DRC with the solutions that can benefit the population and promote digital and financial inclusion,” said Vodacash MD Hashim Mukudi, “together we can drive economic development and provide services to those in dire need of access to financial services in rural and remote areas.”
In the Central and East African regions M-Pesa is the largest mobile money brand with a 61% market share. In the Democratic republic of Congo it constitutes a 10% contribution to GDP through its 6 million customers. Vodacash is a subsidiary of Vodacom Congo, which in turn is a subsidiary of the Vodacom Group in South Africa and the UK Vodafone Group.
With its M-Pesa brand, VodaCash offers a products and services at quality/price ratio adapted to the spending power of the Congolese population. Vodacom said the 6 million subscribers make it a key player in the DRC financial inclusion programme, which is endorsed by the Central Bank of Congo (BCC).