MTN’s Mobile Money Platform, MoMo, and banking technology company Jumo have partnered to launch Qwikloan to offer affordable, short-term loans in South Africa.
Qwikloan enables MoMo users to obtain small, short-term loans on their mobile phones, ranging from R250 to R10 000 depending on eligibility, through a seamless application process available via the MTN MoMo App or USSD (*151#).
Qwikloan is able to reduce the cost of lending to a customer to as low as 10%, thanks to MTN MoMo’s payment infrastructure and JUMO’s core banking infrastructure with AI prediction capabilities.
“MoMo’s Qwikloan offering is a testament to our dedication to providing financial solutions that prioritise accessibility and affordability,” says Bradwin Roper, chief financial services officer at MTN South Africa. “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.”
Qwikloan has been available to smartphone users in South Africa via the MTN Mobile Money app since December 2023. Now, opening up access to include users of feature phones via USSD will enable all South African individuals and informal traders to fund productive and sustainable ventures, without the need for data or smart mobile devices.
“Our work with MTN will support entrepreneurs who need simple, quick access to working capital to grow their businesses,” says Jumo president, Joe Mucheru. “This work demonstrates how partnerships between financial technology companies such as JUMO, and mobile money providers are essential to driving financial inclusion and creating more opportunities for customers to borrow and save conveniently.
“There is even greater potential to grow eligibility and accessibility by introducing bank partners to the initiative. Working with partners to build the infrastructure they need to achieve their goals is what we do.”
Qwikloan is available to both prepaid and postpaid MoMo registered customers. To apply for a loan, users simply need a registered South African ID number and must undergo a credit affordability check. Upon approval, funds are deposited directly into the user’s MoMo wallet, with repayments collected from the same wallet.