Kenya: Press Release: Lipa Na M-PESA Takes Lead in Cashless Transactions
Friday, 05 December 2014
Nairobi, 3 December 2014 --- Safaricom’s Lipa Na M-PESA has overtaken all other means of cashless transactions and emerged as the most preferred method of making payments without money among customers in Kenya. |
According to a study conducted by McKinsey, nine out of ten payments are still made in cash. However, growing evidence reveals that cashless services like Safaricom’s Lipa na M-PESA have overtaken the volume of transactions registered through debit and credit cards as well as other mobile money propositions.
With over 32,000 active merchants and average transactions of KES1,000 and above on the service, there has been a remarkable increase in the volume of transactions through Lipa Na M-PESA.
‘It is not lost on us that 94% of transactions in Kenya are in cash and we feel that there is an immense opportunity for the number of cashless transactions to grow. We have already made investments in the public transport sector and in government transactions, which we believe are the next growth frontiers for Lipa Na M-PESA,’ said Betty Mwangi, General Manager, Financial Services, Safaricom.
Safaricom has launched an eight-week consumer and merchant promotion to encourage the use of M-PESA for retail transactions, as it seeks to grow usage of the revolutionary mobile money service and entrench a cash-light culture in the country.
Ms. Mwangi explained, ‘A majority of our over 19.5m registered M-PESA customers already use the service to make person-to-person transactions. With this initiative we aim at encouraging them to also enjoy the additional benefits and convenience derived from additional value added services available on M-PESA.’
During this promotion, Safaricom will reward one customer each week with a fully furnished house valued at KES12m. Consumers will also win KES32m in cash and 16m in airtime.
Lipa Na M-PESA merchants also stand a chance to win a pick-up vehicle every two weeks. In addition, merchants will win KES40m in cash.
To qualify for the promotion, customers will need to use Lipa Na M-PESA to pay for goods and services, move money between their mobile phones and their banks and/or SACCO’s, or take M-Shwari loans during the two months of the promotion.