Ecocash is one of the first mobile money service providers in Zimbabwe and still dominates the sector with over 5,402,393 of active subscribers and a market share of a plus 95.5%.
The Cassava’s Fintech Flagship, Ecocash, has proved to be the best mobile money service provider in Zimbabwe and has also helped to ease pressure on the dying economy of Zimbabwe.
Mobile phones are being rated the best ever technology that has happened in Africa over the past 10 years, according to the sector performance report by Potraz, Q3 of 2018 there was a 4% increase in the mobile penetration rate to reach 91.9% from 87.7% recorded in the second quarter of 2018.
Mobile Phone Penetration refers the number of active SIM cards or mobile phone users per 100 people within a specific population, it does not refer to the number of mobile phone devices.
Could this be influenced by the rise of mobile money services?
Before Zimbabwe was under cash crisis there has been smooth on the increase of mobile penetration in the country. The only use for mobile phones was for communication with your beloved ones. In this age and time, one really needs the devices to perform a lot of tasks.
When the country started to face cash crisis, mobile phones became a device that everyone was in need of, so many fintech companies like Paynow, Zimswitch, GetBucks, Cassava Smartech just to mention a few, came up with new ideas/ technologies to ease the way people in Zimbabwe were surviving.
Mobile money services especially Ecocash, eased the situation in Zimbabwe whereas people we transaction using phones, Unstructured Supplementary Service Data (USSD) Codes, Bar Codes to make their payments to the retail outlet of their choice.
The increase on mobile penetration also affected a 21% jump in mobile internet and data usage to record 7,395TB from 6,104TB recorded in the second quarter of 2018.
Without EcoCash’s intervention this would mean the cash stringent society will face the direct impact of the liquidity crisis the nation is facing especially considering that about 90% of banking institutions in the country are linked to the mobile money service which has basically been used as a mule.
In a Q3: 2018 report released by RBZ, the banking sector 65% of the deposits that are made are transitory deposits which have mainly been resultant of the mobile money service, the relationship that they share is the financial inclusivity that the mobile money service offered that banks could not because of their barriers