Tusker Mattresses, the company that operates East Africa’s famous Tuskys Supermarkets brand, has launched a festive season customer reward programme that has raised the use of Safaricom’s mobile payment solution, ‘Lipa na M-Pesa’ (Swahili for ‘pay with M-Pesa’) at Tuskys stores countrywide.
The development has been attributed to the allure of winning one of the 38 cars up for grabs in an affair dubbed the ‘Tuskys Christmas Deals Poa’ sales promotion.
In less than a week, the use of Lipa Na M-Pesa services at Tuskys’ tills has shot from an average daily application rate of 17% to 22% of daily sales collection. A sales assessment by the firm now confirms that Lipa na M-Pesa daily sales, had reached the Ksh27 million ($270,000) mark and are still growing.
Lipa Na M-Pesa is a payment services platform from Safaricom’s largest telecommunications firm, Safaricom.
Speaking when he presented two cars to the first winners in the ongoing campaign in Kenya’s capital of Nairobi, Tusker Mattresses Group CEO, Dan Githua, said the use of mobile payment solutions had traditionally represented just about 17% of overall sales with debit and credit cards registering 15% and cash still strong at more than 60% of the daily sales.
Githua noted that retailers are keen to support cash-lite options, which provide better operating efficiencies by reducing the cost of cash holding including insurance premiums, cash in transit costs among other overheads
“With more than 150,000 transactions at the tills per day, the use of Lipa na M-PESA, in the past week, has been growing significantly, as the preferred payment solution edging out plastic cards by a good margin,” Githua said.
“Cash is still king but all indicators are that the adoption of mobile payment options is poised to be a game changer in the local retail market and could soon hit the 25% mark,” he added.
During the prize presentation, Parliament staffer, Godfrey Lumanyi who shopped at Tuskys United Mall last Friday and Nairobi businessman Charles Njogu, who shopped at Tuskys Pioneer, Nairobi on Saturday won the first two cars. Other prizes presented at the weekly handover event included: 10 fridges, 25 electric kettles, 35 microwaves, one sofa set and 10 Televisions.
Tusker Mattresses is predicting a 30% growth in sales this festive season, attributed to growing consumer confidence and renewed marketing energy from leading brands.
The group’s latest campaign unveiled in conjunction with Safaricom Limited, the Coca-Cola Company among 54 other leading suppliers to the firm will feature a more Kshs 50million customer rewards basket with 38 vehicles to be won across the Tusker Mattresses network in Kenya.