Giving the Kenyan people the flexibility to make secure financial transactions is key to helping the economy grow. Although cash remains a popular way to make payments, it comes with inherent security risks and handling costs. M-Pesa, which has been rolled out to 160 of their petrol stations, enables anyone with a mobile phone to make instant, secure payments, at the same time helping the company increase average spend and footfall within stores.
Vodafone’s M-Pesa, a reliable and secure payment platform, is helping Vivo Energy with streamlining its customers experience.
The Challenge
For over a hundred years, Shell has had a recognisable presence in Kenya. Today, Vivo Energy operates using the Shell brand at its petrol stations in Kenya and is one of the country’s most popular fuel and lubricant suppliers. The company has an extensive network including major bulk oil storage terminals, aviation services, and a lubricants blending plant in Mombasa, enabling it to serve multiple retail and commercial market segments.
For years cash has been the most common method of payment for goods and services, however, it is not without its challenges. It is inherently insecure and can be stolen, lost or even counterfeited. The cost of handling and accurately recording physical transactions is also a burden on retailers, as is ensuring it is secure in-store and on the way to the bank. That’s why credit and debit card transactions have become more popular in recent years.
While many people might not have access to financial facilities, the vast majority do carry a mobile phone. This presented one possible opportunity to introduce a more convenient payment method.
"We studied the consumer trends and looked into mobile wallets. It became clear that M-Pesa was the market leader" Samuel Mbugua, Card Manager Vivo Energy
The Solution
M-Pesa enables millions of people who have access to a mobile phone, but do not have or have only limited access to a bank account, to send and receive money, top-up airtime and make payments.
Vivo Energy customers can transact securely using M-Pesa by entering a six digit shortcode to identify the outlet and their PIN to confirm the transaction. Both parties receive an SMS confirming the amount that has been transferred. 15.7 million people in Kenya actively use M-Pesa today.
Safaricom, Vodafone’s local affiliate in Kenya, was responsible for rolling out M-Pesa till at the point of sale in 117 initial outlets; that number has since grown to 160.
"Safaricom played an important role in deploying M-Pesa and without its help, a successful implementation would have been a tall order,” continues Mbugua. “Safaricom provided onsite installation and training to ensure our employees could use the system. It is providing a stable infrastructure on which we can rely." Samuel Mbgugua, Card Manager Vivo Energy
The Benefits
M-Pesa has had an immediate impact on Vivo Energy with the realisation of multiple benefits. By reducing in-store cash handling, it minimises the risk of robbery and makes the transaction process more efficient. It is also much simpler for customers who know they can pay easily without cash.
Key Benefits Delivered:
Increases customer convenience: Providing Flexible mobile payments leads to better used Experience and increased sales
Minimises risk: Cashless payments reduce the opportunity for robbery or counterfeiting
Improves operational efficiency: more accurate accounting removes possibility of human error
Lowers overheads: Removes the cost of physically handling cash, securing it and transporting it
"M-Pesa makes our job easier and means that all transactions can be precisely monitored so we run more effectively. At the same time, the customer experience is improved so our income grows. That’s why we are looking at rolling out M-Pesa to other countries" Samuel Mbgugua, Card Manager Vivo Energy
