Stiff competition in card market as Kenyan company launches card less loyalty platform

CEO Longitude Finance Michael Monari, left, and CEO M-Zawadi Naftali Obwoni during the launch of M-Zawadi (PHOTO: JONAH ONYANGO/STANDARD).

NAIROBI, KENYA: Competition in the card business is set to heighten in the coming days following the launch of cardless loyalty platform by a Kenyan company on Wednesday.

Mzawadi Holdings said it has created a platform that will enable shoppers earn points without necessarily having a card but through their mobile phone numbers.

“So after shopping in a supermarket, grocery, petrol station or any outlet instead of a merchant asking you for a card to earn points, they will instead ask you for mobile phone number where points will be channeled,” said Naftal Obwoni, Chief Executive Officer, M-Zawadi.

“This innovation to us is revolutionary because it gives everyone opportunity to earn points and also offers merchants who could not afford printing cards to reward their clients,” he adds.

According to Michael Karume, Mzawadi Business Development Manager, a merchant normally parts with between Sh300 to Sh500 to produce a loyalty card. The normal cards also do not have cross industry coalition to allow users to redeem points at unrelated outlets.

"Many businesses have been locked out by the prohibitive charges only leaving big brands to currently offer loyalty points to their customers, this platform will allow even a grocer to reward their loyal customers who have telephone numbers.”

The new technology rides on wider penetration of mobile phones in Kenya. According to the latest sector statics report for the period April to June 2014, the last quarter of the financial year 2013/2014, ICT sector continues to witness growth.

During the period, the total number of mobile subscriptions grew by 5.6 per cent to 32.2 million up from 31.8 million subscriptions. This increase was reflected in the mobile penetration in the country which stood at 79.2 per cent.