MTN’s Mobile Money Platform, MoMo, and banking technology innovator, JUMO, have teamed up to introduce QwikLoan, a pioneering initiative aimed at providing accessible and affordable short-term loans.
MTN MoMo Overtakes M-PESA as the Leading Mobile Money Service in Africa with 57 Million Usershttps://t.co/tUmaQxntrd @MTNNG @MTNGhana @MTNza @MTNCameroon
— BitKE (@BitcoinKE) March 15, 2022
Founded in 2015, JUMO offers savings and credit products to entrepreneurs in emerging markets, as well as financial services infrastructure to partners such as eMoney operators, mobile fintech platforms, and banks. The firm, which raised $120 million in 2021, has 26 million customers across Ghana, Tanzania, Kenya, Uganda, Zambia, Côte d’Ivoire, and South Africa.
🇿🇦 It took 6 weeks to launch Qwikloan in South Africa. Chief Financial Services Officer for @MTNMoMoGroup, @BradwinRoper shares how Qwikloan and the partnership with JUMO is one of the fastest growing iterations of this type of tech in #Africa.https://t.co/DRC24jaXhs
— JUMO (@JUMO_WORLD) February 22, 2024
QwikLoan, accessible through the MTN MoMo App or USSD (*151#), empowers MoMo users to obtain small, short-term loans ranging from R250 to R10,000. The application process is seamlessly integrated into the mobile platform.
QwikLoan diverges from traditional banking practices by offering interest rates as low as 10%, a substantial reduction compared to the standard 24% prevalent in the industry. This cost-effectiveness is facilitated by leveraging MTN MoMo’s robust payment infrastructure and JUMO’s advanced core banking infrastructure, reinforced with AI prediction capabilities.
“In these challenging economic times, our goal is to empower South African consumers by offering a reliable alternative with significantly lower interest rates compared to banks,” said Bradwin Roper, Chief Financial Services Officer at MTN South Africa.
Initially launched in December 2023 for smartphone users, QwikLoan has now expanded its accessibility to include feature phone users via USSD. This strategic expansion ensures that all South Africans, regardless of the type of mobile device or costly data, can access the financial support needed for productive and sustainable ventures.
“Our work with MTN will support entrepreneurs who need simple, quick access to working capital to grow their businesses. This collaboration exemplifies how partnerships between fintech companies like JUMO and mobile money providers are essential for fostering financial inclusion,” said Joe Mucheru, President of JUMO.
QwikLoan serves both prepaid and postpaid MoMo registered customers. To apply for a loan, users only need a registered South African ID number and must undergo a credit affordability check.
Upon approval, funds are directly deposited into the user’s MoMo wallet, streamlining the entire lending process. Prospective consumers can register and apply through the user-friendly MTN MoMo App.
