MoMo Rwanda, in partnership with Yabx Technologies and I&M Bank, on December 3 launched "K’avance”, an innovative overdraft service designed to help users complete essential mobile money transactions even when their wallet balance is low.

The service aims to make payments seamless and keep everyday financial moments uninterrupted, advancing Rwanda’s vision of accessible and inclusive financial services.

K’avance (read Ka avanse) enables eligible MoMo users to complete essential transactions, such as sending money, paying merchants, or purchasing airtime, even when their account balance is insufficient.

Powered by Yabx’s advanced digital lending technology, K’avance is the first product of its kind on the market. It mixes innovation, local insight, and strong institutional partnerships to deliver seamless, on-demand financial support at the tap of a button.

Yabx, a leading fintech company focused on expanding financial access across Africa, leverages advanced data analytics and strategic collaborations to provide innovative digital credit solutions.

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How to access K’avance

Customers can access the K’avance service by dialling *182*5*2, follow the prompts to review and accept the terms and conditions, receive notification of your credit limit once approved, after which you can begin using K’avance.

Speaking at the launch event, MoMo Rwanda Ltd CEO Chantal Umutoni Kagame said that K’avance is another milestone in MTN's fintech subsidiary's journey to provide practical financial solutions tailored to its customers’ needs.

"We understand that access to small, timely credit can make a big difference in Rwandans’ daily lives, and K’avance is here to fill that gap,” she said.

To the ordinary Rwandan, Umutoni explained that MoMo has been a transformative digital platform to everyone since after each transaction made made on MoMo, life is made.

"We don't value the job that we do based on the transaction but life we're transforming. There's capital, schools fees paid, and more. Everything counts on our transactions,” she added.

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How it works

Philip Gakuru, Senior Products and Services Manager at MoMo Rwanda, explained that the new service allows customers who borrow quick cash to repay within one day at a cost of only 3%. If repayment goes beyond a day, an additional 0.7% fee is charged.

To put this into perspective, he gave an example: if you go to refuel your car or motorcycle and find that the price has increased unexpectedly, you can use K’avance to top up and get the fuel you need.

"The same applies in any situation where you are stuck with insufficient funds. Customers can access amounts ranging from as little as Rwf1 to up to Rwf1 million and they can borrow multiple times as long as they have not reached their approved limit,” he added.

"K’avance is a strong example of how innovation and strategic partnerships can unlock meaningful impact,” noted Benjamin Mutimura, CEO of I&M Bank Rwanda Plc.

"With this collaboration, we are delivering solutions that are not only timely but also relevant to the evolving needs of our customers,” he added.

Cynthia Mutete, Head of Product Development at I&M Bank, explained that MoMo will help the bank reach more customers and serve as the lending party.

"Collaboration will enable customers to access integrated services anytime and anywhere. One only needs to be a MoMo user, nothing more. We want to be part of the solution providers,” she noted.

"With K’avance, we’re addressing the real liquidity challenges faced by Rwandans in their daily lives,” said Puneet Chopra, Chief Growth Officer at Yabx Technologies.

As explained by Parvine Finette Bwitonzi, the Country Manager of Yabx, the fintech partners with mobile money operators and financial institutions to offer digital microloans.

"Since mobile money platforms have distribution channels and access to customer data, Yabx transforms that data into a credit line, enabling mobile money providers or banks to determine the best lending practices," she said.

"The service will ensure that customers can access responsible, data driven credit when they need it most, inclusion, trust, and participation in Rwanda’s growing digital economy. We remain committed to driving inclusive innovation that brings formal financial services closer to everyday life,” added Puneet.

MoMo Rwanda is encouraging customers to try K’avance, a convenient and flexible overdraft service available to eligible users.

Customer eligibility is determined through behaviour and scoring by TransUnion Rwanda to promote responsible lending.

With more than 5.1 million subscribers, over 65,000 agents, and more than 560,000 MoMoPay merchants, MoMo Rwanda continues to lead in financial inclusion through innovations like MoMoPay, MoKash, Tap&Go, and international remittances.

K’avance is now available. If your MoMo balance runs low, it automatically tops you up. Simply dial 1825*2# to register.