Safaricom introduces Faraja, a credit service at allows its customers to buy now and pay later for goods in select shops in Nairobi.
How Faraja works
Faraja is a Safaricom service in partnership with EDOMx that makes it possible for Safaricom customers to pay for goods and services on credit using Lipa Na M-pesa. You can buy products ranging from Ksh. 20 to Ksh, 100,000, and then pay for them later.
The only requirement of using Faraja loan is that you must have an active Mpesa that has been in use for not less than 6 months.
Faraja loan limit varies depending on your Mpesa transaction history. You are supposed to repay your loan within 30 days of purchase and at no interest rate (0%).
How Faraja benefits from offering zero-interest loans is that it charges businesses a facility fee to use the service which does not affect the customer. In simple terms, businesses need to pay a fee to allow customers to pay them through Faraja Loan.
How to use Faraja Loan to make Payments
To apply for Faraja loan and use it in paying for your goods, follow the procedure below;
- Dial *799# to access services via USSD Code or;
- Login to Mpesa Super App, under services, and select Faraja
- Then Optin
- Enter your Mpesa account Pin (you will be able to see how much you can spend)
- After registration, pay for goods purchased by Selecting Lipa na Mpesa or Buy Goods and Services (till)
- Enter product amount
- Make your payment
You will receive an SMS from Safaricom notifying you whether your transaction was successful or failed if you do not qualify.
To repay your Faraja loan, Dial *799# and proceed to the repayment option.
Business onboarding
Businesses can allow customers to pay for their products using Faraja Loan by applying through Faraja Credit website (farajacredit.com) or by contacting EDOMx using phone number (254) 701 220-220 or email info@edomx.com.
Businesses will receive payment immediately after a customer makes payment through Faraja. This means a business will not be affected in any way if a customer defaults.
Some of the popular shopping places that you can currently use Faraja to pay for goods include Naivas Supermarket, Goodlife Pharmacies, and City Walk shoes eCommerce. Other available merchants that allow Faraja payments are listed on the Mpesa app.
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