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Kenya is already known for having one of the most successful mobile money transfer stories in the world, as mobile transactions have become firmly entrenched in their cultures. By 2010, 50% of Kenya's population were making use of mobile payments. Even traditional herdsmen are paying for cows with their phones and chatting away on social media. South Africans like other African people are also extremely dependent on their mobile phone, as landlines were skipped by a large portion of the market, unlike the first world countries we know of where landlines are not only pervasive but also extremely cost effective in comparison. The difference between South Africa and Kenya however, is that mixed into the rural elements of South Africa is an advanced retail and formal sector, that have systems in place similar to that of our first world counterparts. It is in this blend of two contrasting market sectors that lies the obstacle, as well as the opportunities.
Take M-Pesa for instance. This mobile-phone based money transfer enjoyed huge success in Kenya and Tanzania, and has proven that it is the most popular mobile payment system in the developing world. When they first launched in South Africa in 2010, they expected huge results yet, the service struggled to get off the ground. Despite projections that the service would sign 10 million users up within its first year, they only managed to register under 200,000.
This does not reflect any faults on M-Pesa's part - it remains an excellent service - but rather, the subtle differences between the Kenyan and South African markets. Kenya mostly makes use of mom-and-pop shops, with no point of sale infrastructure, whereas South Africa has a sophisticated retail industry with systems to compliment this (not to mention more stringent local regulations).
Retail will be the big driver (and enabler) of mobile transactions in South Africa, with many large organisations already rolling out various transactions and services across the board. The key for every market is starting the customer on a journey by keeping the services simple, ensuring the services are focused on answering a need, and adding value to the end customer. It is within this simplicity and mastering the basics, that the market thrives.
Here is why mobile transacting in SA is fast-becoming popular:
Now, with retail applications such as the Checkers Eezi Coupon app, users can access information and dozens of mobile coupons while redeeming these discounts effortlessly at the point of sale. This solution not only provides information, but also drives savings straight to the consumers' pockets, while allowing brands to drive spend of their products in a targeted manner, ensuring they only pay the discount when someone has interacted with the campaign. This specific application ranked number one in the i-Phone app store in the first week of launching, indicating that consumers were more than eager to try it out. As an added bonus, the discounts offered can be significantly larger, because the campaigns are so cost effective to roll out.
2012 was the start of this mobile move with Shoprite and Checkers enabling their customers to get instant shopping discounts on their cell phones with EeziCoupons, an app that has effectively replaced outdated paper coupons. Consumers simply need to view coupons on their cellphones, purchase those products in store and enter their one unique wiCode at the till's pin pad in the store. Pick n Pay and MTN introduced Mobile Money, allowing their clientele to send and receive money through any active cellphone number in South Africa, pay for goods and services, and deposit and withdraw cash at participating outlets. 2012 also sawsone of SA's leading hospitality brands, including one of the largest of these being KFC, integrate their tills to enable digital discount and reward campaigns.
These are just the first signs that a mobile retail revolution is well and truly under way - and we all stand to benefit.