Mobile Money Transactions to increase 2018.
MOBILE Money Services is expected to be a key revenue contributor for the mobile network providers in Zimbabwe as more subscribers embrace the facility on the back of cash shortages. According to Reserve Bank of Zimbabwe as of 15 December 2017 USD 429,58 million had to be transacted in form of mobile money services payments contributing to 19,49% of the of the USD 2, 203 billion dollars which was transacted between 08/12/17 and 15/12/17.
In the third and last quarter sector performance report of 2017, the Postal and Telecommunication Authority of Zimbabwe (Potraz) reported that airtime and merchant payments using mobile money recorded the highest increase of 87.9%
With the government urging, pensioners to embrace mobile money transactions for their salaries, the sector is expected to grow even bigger this year. This, therefore, is a plus to all the mobile network players in the country. The continuous cash shortages in the country will play a major role in revenue benefits for the network providers. It is however yet to be seen if they will not increase the transaction charges.
Currently, OneMoney charges as little as $0.05 per transaction whilst Telecash and Ecocash stood at $0.11 when transacting to registered numbers.
In its statement, Potraz acknowledged mobile money services as an important tool in business and expected to continue in the current environment.
“Mobile money services have become an important alternative to cash for business to business transactions (B2B), business to person transactions (B2P), for example, salaries, person to person transactions as well as person to Business transactions such as bill and merchant payments.” It added to highlight
“The introduction of a bank to wallet transfers has enabled the even wider use of mobile money services. This trend of growing mobile money use is likely to continue in the current environment. Mobile money has become a popular and convenient alternative method of paying for goods and services in the current environment,” notes Potraz.