Safaricom Fuliza Overdraft Service to Drive MPESA Revenue, Says a Citi Research

Following the recent successful launch of the Fuliza overdraft service for MPESA users, a Citi research has shown that MPESA revenues driven by retail transactions and e-Commerce are expected to go up in 2019.

The increased earnings are expected to come from two areas:

  • Increased purchases facilitated by Fuliza
  • Fuliza overdraft percentage earnings

On average, M-PESA users make 12 transactions per month. In addition, the 58 percent transaction drop rate due to a lack of insufficient M-PESA balance is expected to go down dramatically as the service gets into use.

The Fuliza service is Safaricom’s latest product rollout that has come from the company’s data mining research and analytics as it seeks to leverage insights from its vast user base and their money transaction behavior.