TNM Mpamba Ltd, a wholly owned subsidiary of TNM Plc has become the first mobile telecoms network service provider in Malawi to offer overdraft facility using mobile phone wallets.
Dubbed TNM Mpamba Kankhe, the facility offers a financial envelope allowing customers to complete their transactions using their TNM Mpamba wallets even when they do not have enough balances in their wallets.
TNM Mpamba General Manager Christopher Sukasuka explained at the launch in Lilongwe that electronic money/value will be credited to qualifying TNM Mpamba wallets on demand for withdrawals either at agents or be pushed to banks or for use in Mpamba-related transactions when customer wallets run out of electronic money/value or below requirements.
“Mpamba Kankhe marks the continuation of our pioneering spirit as a mobile payment technology platform provider. With it, TNM Mpamba customers will be able to borrow electronic money for a wide range of Mpamba transactions based on qualifying criteria,” he said
He said apart from the option of cash advances. Mpamba Kankhe will provide overdrafts for payment categories such as utilities, merchant (POS) payments, television subscriptions airtime and bundle recharges and person to person (P2P) transfers.
A key eligibility requirement is customers who have used Mpamba for a minimum of 90 days (three months) and satisfy KYC requirements.
“An interest rate of 6 percent per month, prorated will apply and a penalty of 0.5% may accrue where customers exceed a prescribed repayment period of 30 days. Such interest will be necessary to cover the service costs when customers exceed 30 days before crediting their wallets. Repayment will be through the same Mpamba wallet” said Sukasuka.
The General Manager said TNM Mpamba Ltd reserves the right to scrutinize customers eligibility to access the overdraft facility based on their profile kept in TNM’s KYC database, and history of usage.
He says Mpamba kankhe is the smartest way to manage one’s finances as it provides the easy access with no need for documentation and is available 24/7
“It brings convenience to our customers. No need to panic or stress when your wallet balance is low. I encourage those who are not using their Mpamba wallets to start now to improve their credit score and start enjoying the service (the cheapest overdraft facility in the country),” said Sukasuka.
Apart from individual customers, the overdraft facility has also been extended to agents to allow them to transact with more than their wallet balance.
Determination of agent overdraft registration/limit will be based on agent’s monthly commissions, transaction volumes (Cash in, cash out, airtime top ups and agent bill payments) and duration on Mpamba (6 months)
Through the facility, agents will be able to carry out customer cash in, ESCOM token sales, TNM airtime/bundle sales plus other Mpamba agent bill payments that may be introduced.
He said Mpamba Kankhe is safe as it is protected by TNM Mpamba’s safety features that include PIN encryption, and privacy settings. Mpamba kankhe will operate within the legal framework provided by the Reserve Bank of Malawi (RBM).
Sukasuka said Mpamba Kankhe highlights TNM’s commitment to contribute to economic growth activities by applying mobile telecoms technology.
“TNM Mpamba strongly believes that providing our customers with credit at concessional rates as Mpamba Kankhe does, will shred the barriers to financial inclusion while accelerating growth of the credit society and fulfilment of personal and institutional financial goals,” he said.
