Mobile money platform MoMo, operated by MTN, and banking tech firm Jumo have formed a strategic alliance to introduce Qwikloan, a new financial product, in South Africa.
The essence of Qwikloan is to empower MoMo users to secure prompt cash directly from their mobile phones, with amounts ranging from R 250 to R 10,000 based on eligibility. This can be accessed through the MTN MoMo app or by dialing *151#.
Although originally debuting on the MTN MoMo app in December 2023, Qwikloan has now integrated USSD to ensure accessibility for individuals with basic phones, ensuring universal participation without the need for high-end smartphones or costly data plans.
Qwikloan distinguishes itself from traditional banks with a remarkably low-interest rate, starting at 10%, a significant reduction from the common 24% imposed elsewhere.
MTN attributes this favorable interest rate to the efficiency of MoMo’s payment system and Jumo’s advanced AI-powered banking infrastructure.
This collaborative endeavor reflects a wider trend where telecom companies seize opportunities in the thriving fintech sector. In 2023, Vodacom, a rival of MTN, formed a partnership with Old Mutual to launch VodaLend Personal Loans, providing amounts up to R250,000.
Even Telkom has joined this expansion, extending business loans up to R5 million.
According to Joe Mucheru, Jumo’s president, this partnership aims to support entrepreneurs in securing funds for business expansion. Jumo also envisions future collaborations with banks to enhance the array of financial offerings.
News reporter: Victoria Fakiya
News Source: Techpoint africa
