Safaricom is taking its mobile payment to the low end retailers as it seeks to widen its tuff and ward off card payment options surge.
Banking on its massive customer base the telco has embarked on a countrywide campaign to bulk up its Lipa Na M-Pesa revenue by 30 per cent this financial year.
Stung M-Pesa system delays, high end customers would rather swipe a card and walk away than keep waiting on the que for a transaction message.
MasterCard, Visa and several other card payments options have increased promotion activities to grow their pie of Kenya’s emerging middle class.
“The target is to recruit new merchants among them supermarkets and petrol stations, with a view to entrenching Lipa Na M-PESA,” said general manager Safaricom business Rita Okuthe.
Data released by the Central Bank of Kenya (CBK) shows that mobile money payments grew 18.2 per cent year-on-year to June 2015 while card payments increased by paltry 4.2 per cent in the same period.
The value of mobile money stood at Sh1.3 trillion while that of card payments rose to Sh654.7 billion according to the numbers.
Safaricom has struck partnerships with Uchumi and Tuskys supermarkets, as well as petrol stations in major towns to allow customers the option of making mobile payments for their purchases.
“With the mobile space continuing to attract attention both for payment processing and money transfers, we expect continued growth as more products and services are loaded onto the mobile platforms,” said analysts at Nairobi-based Standard Investment Bank (SIB).