MTN MoMo and JUMO Launch Qwikloan for Affordable Short-Term Loans in South Africa

Qwikloan offers low-interest short-term loans via MTN MoMo, fostering financial inclusion and accessibility.

MTN’s Mobile Money Platform, MoMo, and banking technology company JUMO have partnered to launch Qwikloan, which offers affordable, short-term loans in South Africa and will drive financial inclusion across the country.

Qwikloan enables MoMo users to obtain small, short-term loans on their mobile phones, ranging from R250 to R10,000 depending on eligibility, through a seamless application process available via the MTN MoMo App or USSD (*151#). Unlike traditional banking institutions with a 24% interest rate on short-term loans, Qwikloan is able to reduce the cost of lending to a customer to as low as 10%. This is made possible by MTN MoMo’s payment infrastructure and JUMO’s core banking infrastructure with AI prediction capabilities.

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.

Bradwin Roper, Chief Financial Services Officer, MTN South Africa

Qwikloan has been available to smartphone users in South Africa via the MTN Mobile Money app since December 2023. Now, opening up access to include users of feature phones via USSD will enable all South African individuals and 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. There is even greater potential to grow eligibility and accessibility by introducing bank partners to the initiative. Working with partners to build the infrastructure they need to achieve their goals is what we do.

Joe Mucheru, President, JUMO

The collaboration 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. This partnership aligns with both MoMo and JUMO’s missions to foster financial inclusivity, ensuring that all South Africans, whether on the MTN network or not, can benefit from this financial service.

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