Our 7th topical note titled “Fuliza” “Fuliza in numbers?” analyses Safaricom’s revolutionary service “Fuliza”.
The report begins by giving a brief background of mobile credit and introduces Safaricom Plc’s new product “Fuliza”
We hold the view that “Fuliza” will have a considerable impact on M-Pesa revenues and subscriber loyalty and this is also covered in the report.
With regards to revenue, we estimate that “Fuliza” will increase total M-Pesa revenues by 2.6% FY2019/20 to KES.82.27Bn.
This will see M-Pesa’s contribution to total service revenues increase to approximately 32% FY 2019/20 compared to 28% FY 2017/18.
In terms of risk exposure, we see a near zero default rate for “Fuliza” thus underlying the viability of this product.
“Fuliza” is a game changer in mobile financial services supporting our view of Safaricom’s competitive advantage in innovation and mobile money services.
With “Fuliza” Safaricom makes a case for value added services as opposed to trying to compete with its main rivals on pricing. Download Report