Vodacom Lesotho

Interest Payment Notice

VCL Financial Services (VCLFS), commonly known as M-Pesa, hereby notifies its customers of interest payments that will be paid into eligible customers’ M-Pesa accounts on 17th February 2022. These payments are their share of interest accumulated over the period October 2017 to December 2021. 

Being a mobile money issuer, VCLFS is requested by law to keep customers’ actual deposits with commercial banks in a Trust Account. The money that is in the trust account needs to be equal to the outstanding balance of all electronic money holders. The money kept in the trust account shall earn interest, as per Payment Systems (Issuers of Electronic Payments Instruments) Regulations, 2017 Schedule 4 (16) (Trust Account).


Eligible Transactions and Exclusions

Only customers who make the following transactions on M-Pesa are going to be considered:

  • Send Money (Person to Person Transactions)
  • Withdrawals
  • Buy Goods (Customer to Business)
  • Airtime and Bundle Purchases
  • Bill Payments


The aggregate value of these transactions is going to be considered, looking at money going in and money going out (Debits and Credits) over a specific period. The timeframe in view for this batch of payments is from October 2017 to December 2021

Transactions and customer types excluded in the interest calculations or being recipients of the said interests are the following:


Transaction Types

  • Cash-In (Deposits)
  • IMT
  • Card to Wallet


Beneficiary  Types

  • Agents
  • Super agents
  • Merchants
  • Business Partner


Calculation of interest and Methodology

Each individual customer is going to have their daily transactions calculated and this is going to be called their “Throughput” (Contribution/Weight), this throughput is going to be calculated as their total Debit and Credit entries. A customer’s throughput is then calculated as a percentage of the total Trust account throughput, the resulting percentage is then multiplied by the total interest accumulated, which determines the share of a customer on the total interest allocation.

It is important to note that the calculation does not take into consideration the amount of money held as a balance in the customer account. Only the qualifying transaction types made by the customer over the period stated will be considered in the calculation.

Customers are further informed that after this first payment, scheduled for the 17th February 2022, customers can expect to receive their interest on a quarterly basis, meaning every 3 months.


For further clarity, please consider the examples below:

Assumptions:

  1. Total value of interest in the Trust Account from October 2017- December 2021 is M10,000.00
  2. Trust Account throughput is M1,000,000.00 (Total spend of M-Pesa customers doing send money, withdrawal, Buying goods, Airtime and Bundles, and Bill Payments)
  3. We will consider 3 customers
    1. Thabo with M1,000.00, the total spend on M-Pesa for the period Oct 2017-Dec 2021 (Total values of send money, withdrawals, Buying goods, Airtime and Bundles, and Bill Payments). This will be Thabo’s throughput.
    2. Bohlokoa with M500.00, the total spend on M-Pesa for the period Oct 2017-Dec 2021 (Total values of send money, withdrawal, Buying goods, Airtime and Bundles, and Bill Payments). This will be Bohloakoa’s throughput.
    3. Teboho with M150.00, with total spend on M-Pesa for the period Oct 2017-Dec 2021 (Total values of send money, withdrawals, Buying goods, Airtime and Bundles, and Bill Payments). This will be Teboho’s throughput.


Example 1: Thabo’s interest payment Calculations

Step 1: Calculate weight of Thabo’s throughput (Assumption 3(a)) as a percentage of the Total Trust Account throughput (Assumption 2).

M1,000.00/ M1,000,000.00 = 0.001 (which is 0.1%)

Step 2 : Find out how much of the Total interest accumulated (Assumption 1), is due to Thabo

0.1% * M10,000.00 = M10.00  (Thabo will receive M10.00 on the 17th Feb 2022)


Example 2: Bohlokoa’s interest payment Calculations

Step 1: Calculate weight of Bohlokoa’s throughput (Assumption 3(b)) as a percentage of the Total Trust Account throughput (Assumption 2).

M500.00/ M1,000,000.00 = 0.0005 (which is 0.05%)

Step 2 : Find out how much of the Total interest accumulated (Assumption 1), is due to Bohlokoa

0.05% * M10,000.00 = M5.00  ( Bohlokoa will receive M5.00 on the 17th Feb 2022)


Example 3: Teboho’s interest payment Calculations

Step 1: Calculate weight of Tebohos’s throughput (Assumption 3(c)) as a percentage of the Total Trust Account throughput (Assumption 2).

M150.00/ M1,000,000.00 = 0.00015 (0.015%)

Step 2: Find out how much of the Total interest accumulated (Assumption 1), is due to Teboho

0.015% * M10,000.00 = M1.50 (Teboho will receive M1.50 on the 17th Feb 2022)


From the examples above, we realize that Thabo, Bohlokoa and Teboho would all be receiving different interest payment amounts based on their spend in the stipulated period. We also realize that their account balances were never included in the calculation.