Summary
DON'T FIGHT MOBILE PAYMENTS BUT PARTNER WITH THE MOBILE AND INCREASE THE PRESTIGE VALUE OF THE SHOPKEEPER'S BUSINESS.
Challenge
CHALLENGE: To increase their debit business, how could Mastercard convince the small shopkeepers to have card machines that they simply couldn't afford? OBJECTIVE - To democratize payment infrastructure in small towns, by fostering a 20% increase in daily card transactions within two months of launch. This objective is strategically aligned with Mastercard's growth and market expansion goals. It taps into an underserved market, opening up new revenue streams and increasing the adoption of Mastercard's payment solutions. Additionally, it enhances the company's competitive position by establishing a presence in small towns and reinforces its commitment to financial inclusion and digital transformation.
Objective
In small-town India, micro and small businesses like kiranas, traders, and technicians remained hesitant to embrace card payments despite government and brand efforts. Small shopkeepers, accounting for 73% of small-town transactions, represented an untapped market. Recognizing rising digital adoption, and near-universal reliance on smartphones, Mastercard addressed the barrier of costly card machines. Introducing the SoftPOS app, Mastercard leveraged the shopkeepers' smartphones, transforming them into card acceptance devices. Through our awareness + adoption campaign, we successfully onboarded 100,000 merchants within the first two months, an average of 1.15 merchants joining every minute, bridging the gap between urban & rural India.
Strategy
Our target audience were our daily needs micro-merchants, whose payment needs the card category is indifferent to. Immersions with shopkeepers told us that they were not averse to digital payments. They had already adopted QR codes and were comfortable conducting business through their mobile. INSIGHT: FOR A SMALL SHOPKEEPER, ACCEPTING CARDS IS NOT ONLY ABOUT TRANSACTIONAL VALUE BUT ALSO ABOUT PRESTIGE VALUE So, what was stopping them from having a card machine? COST! To solve for this, we looked at his current ecosystem and found that the MOBILE IS HIS BIGGEST ALLY Strategy - DON'T FIGHT MOBILE PAYMENTS BUT PARTNER WITH THE MOBILE AND INCREASE THE PRESTIGE VALUE OF THE SHOPKEEPER'S BUSINESS. To effectively engage and educate merchants, our strategy included: Digital Educational Videos: We created concise, informative videos and distributed them through WhatsApp, YouTube, and Facebook for easy access and sharing within merchant networks. Merchant Activation: Under the "Team Cashless" initiative led by M.S. Dhoni and in collaboration with trade associations like CAIT, we conducted outreach programs through on-ground events and digital channels, enlightening merchants about the benefits of Soft POS. Leveraging Merchant Testimonials: Positive experiences from early adopters were harnessed through digital testimonials, enhancing trust and encouraging fellow merchants to join the digital revolution.
Data
The SOFT POS offers a simple and secure digital way to manage transactions without the heavy investment. Once this app was developed, the first task was to raise awareness about it in the merchant community. We needed a credible and likeable face that these merchants could trust - someone who demands love and respect across the country especially in the small towns. M.S Dhoni was roped in as a strategic choice to introduce the merchant community to this revolutionary new app and to educate merchants about the benefits of going digital.
Solution
Results
Mastercard not only exceeded its target but achieved a remarkable 28.5% increase in daily card transactions, surpassing the initial goal of 20%. Brand perception improved significantly, with a 2.7-point increase in "strong local presence" and a 3.4-point increase in "simplified payment experience." This demonstrated the effectiveness of the solution and its value to both merchants and consumers. Digital outreach thrived, with a fivefold increase in website views post-launch and an average 8-minute video duration, indicating strong interest within the merchant community. Furthermore, Mastercard's brand positioning strengthened, with 'good cash replacement,' 'widely accepted,' and 'everyday use' increasing by 5, 2, and 5 points, respectively. The cost-effective solution saved 100,000 merchants a substantial 100 crore rupees, significantly impacting their profitability. Within just two months, 100,000 app downloads within the merchant community showcased the resounding success of the endeavor. Mastercard's innovative approach turned smartphones into payment gateways, bridging the gap between traditional businesses and the digital economy, and enhancing financial inclusion for small-town India. This transformation not only facilitated seamless card payments but also improved the quality of life for countless small shopkeepers. Mastercard's commitment to empowering local businesses had a profound impact, providing a gateway to the digital age for small-town India.
