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In a groundbreaking collaboration, MTN’s Mobile Money Platform, MoMo, and banking technology innovator JUMO have joined forces to launch Qwikloan. This revolutionary initiative seeks to offer accessible and affordable short-term loans, transforming the financial landscape in South Africa.
Qwikloan, accessible through the MTN MoMo App or USSD (*151#), empowers MoMo users to secure small, short-term loans ranging from R250 to R10,000. The application process is seamlessly integrated into the mobile platform. Notably, Qwikloan breaks away from traditional banking practices, offering interest rates as low as 10%, a significant reduction compared to the standard 24% prevalent in the industry. This cost-effectiveness is made possible by leveraging MTN MoMo’s robust payment infrastructure and JUMO’s cutting-edge core banking infrastructure, fortified with AI prediction capabilities.
Bradwin Roper, Chief Financial Services Officer at MTN South Africa, expresses the dedication to providing financial solutions prioritizing accessibility and affordability. “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.”
Initially launched in December 2023 for smartphone users, Qwikloan has now extended its reach to include feature phone users via USSD. This strategic move ensures that all South Africans, regardless of the type of mobile device or costly data, can access the financial support needed for productive and sustainable ventures.
Joe Mucheru, President of JUMO, underscores the impact of partnerships in driving financial inclusion and creating opportunities. “Our work with MTN will support entrepreneurs who need simple, quick access to working capital to grow their businesses. This collaboration exemplifies how partnerships between fintech companies like JUMO and mobile money providers are essential for fostering financial inclusion.”
Qwikloan caters to both prepaid and postpaid MoMo registered customers. To apply for a loan, users only require 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, streamlining the entire lending process. Aspiring consumers can register and apply through the user-friendly MTN MoMo App.