Page 55 - november issue NO.24
P. 55
Entrepreneurship
sometimes experience is how "PesaPata has been in existence since
people confuse between Mshwari 2008 and was developed to provide
and PesaPata. However the fact an alternative platform for needy
that people do so means that customers willing to borrow cash
Pesapata is leverage with such big not exceeding Kshs 20,000 to enable
brand which is a good thing for them solve short term problems
them. and payable in shorter periods not
exceeding 30 days.
The trader says that the
difference between PesaPata and not exceed six months," she says. 1,600 -16,000 monthly   53
Mshwari is that with Pesapata, She told the Commerce and depending on transactions
customers are not required to made in a month. We
deposit some amount in their industry magazine that both the encourage shop and kiosk
accounts before becoming eligible agent and PesaPata benefits owners because they
to borrow from their platform. every time transactions are made understand better their
and profits made at the end of customers than us and
"Besides the cash being the month are shared between therefore pushing Paddy
available for any safaricom mobile Safaricom, Paddy Investments and micro investments is always
subscriber with an Mpesa account, the agent. According to the trader, out of the picture while
anybody can actually become this is what makes the business the agent is lending to
an agent with PesaPata just by unique and ideal for anybody their customers based on
depositing some amount in their because one can actually do it as a mutual respect, honest and
accounts and enroll into the part time job. faithfulness", adds Joyce.
platform through *269*#.
She says that the more a client The Pesa Pata which
This is how Joyce has created continues borrowing and paying has also won several
many opportunities to many the loans, so as the classification business competitions
jobless individuals who have of customer’s changes. One is awards through for their
enrolled as argents and now able to graduate bronze and silver innovative has an employee
earning from the platform. to gold meaning that amount that bracket of 80 employees
one borrows too gets to increase. from 6 individuals who
Once this has been done, the Asked why she chose using Mpesa formed the company about
person is automatically listed as and Safaricom network instead of 8 years ago. The business
an argent and will receive double other several networks Joyce had is visible in major cities
amount based on his or her this to say; "Safaricom and Mpesa e.g. Nairobi Mombasa,
deposits and thereafter eligible to are ideal because their network Eldoret, Kisumu, Nakuru,
start lending the money to people is wider. But we haven't ruled Meru, Embu etc while their
someone knows better", says out working with Airtel and Airtel next frontier is East African
Joyce. The good thing about the money. Once we secure agreement region.
business is that the agent lends with the Airtel, we will offer the
cash to borrowers based on same since it's the second largest Tujenge and PesaPata
mutual trust which PesaPata do mobile subscriber network and initially depended on lending
not have control with. we wouldn't like to lock users in cash to customers through
the platform as we target to hit form of cards until it was
"PesaPata has been in 2 million agents at the end of the digitized two years ago to
existence since 2008 and was year from the 140 agents we reduce the risks and price
developed to provide an alternative currently control ", says Joyce. for conducting the business
platform for needy customers and so has been the
willing to borrow cash not "Agents are mostly shop and improvement on efficiency.
exceeding Kshs 20,000 to enable kiosk owners who make profits
them solve short term problems margin ranging between Kshs
and payable in shorter periods
not exceeding 30 days. It’s meant
to make it possible to lend to
those kind of people based on
social capital", says Joyce. "We
are however evaluating the entire
business and maybe we may
reconsider increasing the loan
repayment period and the amount
depending how the market will
respond in near future. I think if we
were to increase the period, it will
Commerce & Industry November Issue 2016
