Safaricom launches Faraja a buy now pay later product

Safaricom has partnered with EDOMx to launch Faraja, a buy now pays later service. Faraja will enable more than 32 million customers buy on goods credit from businesses on Lipa Na M-PESA. It will enable customers to make purchases of between KSh. 20 and KSh. 100,000 at zero interest fee and complete the payment within 30 days.

Customers can access the service at businesses which offer Faraja by dialling *799# to opt-in or make a payment, or by selecting the Faraja mini-app on the M-PESA Super App. In addition, customers can purchase multiple items simultaneously under Faraja as long as they are within their assigned credit limits.  Faraja seeks to enable business owners to grow their sales and business by enabling their customers to make a purchase at the point of need then make payments later.

Businesses on Lipa Na M-PESA can opt into Faraja through the Faraja portal here or by contacting EDOMx. Customers can use their service at any Lipa Na M-PESA outlet that offers Faraja. Currently, the service is available across all Naivas outlets, Goodlife pharmacies, City Walk amongst other merchants.  Businesses on Faraja will receive payment in full for a product or service immediately a customer makes a payment through the service.

“We continue to innovate M-PESA to empower business owners with different tools and solutions to run their businesses better and to faster grow their firms. Many businesses lose out on sales when a customer would like to make a purchase but lacks money at that point. We are glad to partner with EDOMx to offer Faraja empowering any business to grow their sales by enabling their customers to buy now and pay later,” said Peter Ndegwa, CEO – Safaricom.

Safaricom will enable EDOMx offer the Faraja service to more than 606,000 businesses on Lipa Na M-PESA at a negotiated facility fee payable by the business. EDOMx will extend credit to businesses on the solution enabling them to receive payments immediately a customer makes a purchase on Faraja.