E-Payments Reach $61, 7 Billion as POS Volumes Remarkably Rise

The value of electronic transactions in Zimbabwe rose to $61, 7 billion in 2016 from $56, 9 billion in 2015.

With the increased promotion of the usage of plastic money coupled by the reduction of e-payment charges, many Zimbabweans heeded the call by the RBZ leading to the spike of the transactions.

By Technomag Reporter

Presenting the 2017 monetary policy statement, Reserve Bank Of Zimbabwe (RBZ) governor Dr John Mangudya said this rise signified the quadrupled national Gross Domestic Product.

“Notably, aggregated electronic transactions (or e-payments) reached US$ 61.7 billion in 2016 from US$ 56.9 billion in 2015, representing a high velocity of circulation of more than 4 times of the gross domestic product (GDP) of the country,” he said.

RBZ Governor Dr John Mangundya

He also said, “The payment, clearing and settlement systems in the country remained resilient and continued to operate reliably.”

“A key development was realized during 2016 when POS transaction values became greater than ATM transactions for the first time under the multicurrency system.

This is in line with the Bank’s policy thrust towards plastic money as the country moves to a cash-lite society. During the same period POS volumes also grew by 260percent,” said Mangundya.

The introduction of RTGS multi-currency system in June 2016, saw a gradual  increase in usage of the Rand and Euro currencies mainly by corporates.

“ For the six months ending December 2016, a total value of R656 million and EUR15,7 million payments were processed through the RTGS system whilst the United States Dollar remained dominant at US$30.3 billion over the six months  period,” said the RBZ boss.

“Whilst the Bank is encouraged by the  increase in the volume and value of e-payments, it is imperative for the market and key stakeholders to continue promoting the spread of multicurrency payments through usage of electronic systems that are  cost effective and efficient for the benefit of the economy,” he said.

The RBZ chief said service providers and banks have intensified the distribution of POS devices and access points.

“It is encouraging to note that, in keeping with the thrust of promoting  electronic payments (plastic money), a number of payment service providers and banks have  enhanced deployment of devices and access points.

“As at end of year, 32,540 Point  of Sale (POS) and 40,590 agents were deployed across the country in all sectors of  the economy. This momentum to grow devices and access points dovetails with the  national financial inclusion policy thrust where the planned deployment is expected  to reach 100,000 POS and 90,000 mobile payment agents by year 2020,” he said.

“To this end, the Central Bank will remain resolute in driving the growth of access devices and points through collaborative efforts and address any challenges that may be faced on an on-going basis, as we move towards a cash-lite society.  The transacting public is encouraged to embrace the use of electronic payment  methods, so as to reduce the reliance on physical cash as a mode of payments.”

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