Telecommunications group MTN’s Mobile Money (MoMo) and banking technology company JUMO have partnered to launch Qwikloan to offer affordable, short-term loans in South Africa.
The newly launched Qwikloan enables MoMo users to obtain small, short-term loans, from R250 to R10 000 depending on eligibility, on their mobile phones through the MTN MoMo application or USSD.
MTN MoMo’s payment infrastructure and JUMO’s core banking infrastructure with artificial intelligence (AI) prediction capabilities enable Qwikloan to reduce the cost of lending to a customer to as low as 10%, compared with traditional banking institutions with a 24% interest rate on short-term loans.
“MoMo’s Qwikloan offering is a testament to our dedication to providing financial solutions that prioritise 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,” said MTN South Africa chief financial services officer Bradwin Roper.
While Qwikloan has been available to smartphone users in South Africa through the MTN MoMo application since December 2023, access has been opened to include users of feature phones through USSD, which will also assist informal traders to fund productive and sustainable ventures without the need for costly data or smart mobile devices.
“Our work with MTN will support entrepreneurs who need simple, quick access to working capital to grow their businesses. 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,” added JUMO president Joe Mucheru.
Further, there is potential to grow eligibility and accessibility by introducing bank partners to the initiative.
The collaboration, aligned with MoMo and JUMO's missions to foster financial inclusivity, targets South Africa’s entrepreneurs and the informal sector, while JUMO’s intelligent banking technology aims to reduce unit economics, making high-value products accessible at low prices.
Qwikloan is available to both prepaid and postpaid MoMo registered customers.
To apply for a loan, users need a registered South African identity number and must undergo a credit affordability check.
Once approved, funds are deposited directly into the user's MoMo wallet, with repayments collected from the same wallet.