Pros and Cons of Mshwari

Mshwari is a paperless banking service that is offered through M-pesa. The account is opened through the mobile phone without having necessarily to visit a bank and fill forms for the sake of opening the account.

It has no minimum balance and no charges are levied on the account. The amount of money is freely moved from M-pesa to mshwari without any cost. They also offer loans that need to be repaid over a specific period and they affect the credit score positively hence allowing an individual to borrow large sums of money.

Pros and Cons of Mshwari

Pros of Mshwari

  1. No minimum balance

It does not restrict the amount of balance to be left on the account hence the individual can withdraw the whole amount that is saved with the application.

  1. No charges levied on the account

The user of the service is not allowed to pay any charges on the account hence the operation of the account is free and this encourages many people to use it.

  1. No charges for moving money to mshwari and vice versa

There are no charges that are put on the amount of money transferred from m-pesa to mshwari and vice versa hence making it the better option.

  1. Deposits on mshwari earn interest

The money deposited on mshwari account earns interest and this makes it possible for the user to save a lot of money through the account.

  1. They offer loans

They offer loans to users of mshwari and if the individual repays within the time limit it enables them to improve their credit score hence they can be given large sums of money.

  1. They are reliable

They can be used anytime anywhere by the individuals and this makes the users enjoy their services wherever they are.

  1. It enables the user to get customized reports

The user of the account can get the report about the account and terms and conditions that accompanies the use of the service.

  1. It does not share the data with the third party

The data is only to be used by the account owner and this allows privacy to the information.

Cons of Mshwari

  1. Non-negotiable repayment period

They do not negotiate on the repayment period hence this makes the users to be underscored in case they do not pay the amount taken within the given time.

  1. Threats of being blacklisted

In case an individual does not repay the amount of money borrowed within thirty days, then their names are forwarded to the credit bureau of standards and they will not be able to borrow from any other financial institution.

  1. There is a fee charged on their loans

When an individual takes a loan with a mshwari account then a certain fee will be put on the amount borrowed which will be doubled in case the individual does not pay within thirty days.

  1. You cannot view the history of other m-pesa transactions

It is not possible for the account holder to view the information of other m-pesa transactions and this may make the user not to know how the account is operating.


M-pesa services are very reliable and are mostly used by many people all over due to their convenience. Most countries use the service to make transactions.


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