Raven Limited, a mobile phone software firm, has developed a fully automated credit system that offers workers credit anytime anywhere. Dubbed M-Pepea, the service offers small emergency loans to mobile money subscribers via M-PESA.
M-Pepea advances loans ranging between Sh5,000 and 30,000 to employees at
interest rate of 15 per cent per month. The service is tailored mainly for corporate clients and NGOs whose employees travel a lot in the field.
first need to register with Raven Limited where they are incorporated to the
M-Pepea platform and their interested employees are then issued with unique
In the event of an emergency, the employee sends a text message request
to the reference number provided, which in turn initiates a transaction
on M-Pesa and the user receives the amount requested. The whole process is automated.
The money accessed is deducted from the employee’s monthly payment and
once the payments are settled, the employee automatically qualifies to
withdraw cash the following month. Once registered, one does not have to
withdraw funds and can wait until an emergency arises.
According to Raven Limited, M-Pepea's purpose is not to compete with traditional micro-lending, but micro lenders will obviously consider M-Pepea as a competitor.