The ban on agent lines has continued to affect the mobile money industry causing a 15.2% decline of active mobile subscriptions in the third quarter of 2020 , latest sector performance report has revealed.
The decline was recorded across all mobile network operators.
In the second quarter of 2020 mobile money subscriptions recorded a 2.8% decline which the Q3 has seen an increase.
“Active mobile money subscriptions declined by 15.2% to reach 6,325,666 as at 30 September, 2020, from 7,457,662 recorded as at 30 June, 2020.”
“The decline in active mobile money subscriptions is attributable to the banning of mobile money agent lines by the Reserve Bank of Zimbabwe, “ Potraz said.
Active subscriptions for mobile money wallet Ecocash declined from 6,530,000 recored in the Q2 to 5,452,148 recored in the third quarter.
While for OneMoney subscriptions declined to 854,320 in the third quarter as compared to 892,963 in the previous quarter.
Telecash experienced a large decline from 34,689 in the Q2 to 19,198 in the Q3 of 2020.
While the regulatory authority states that the decline is being attributed by the ban on agent lines.
The Reserve Bank of Zimbabwe issued a directive banning agent lines saying there were no longer serving any illegitimate purpose and were now being used primarily for illegal foreign exchange transactions.
The report points out that there was also an overall decline in the volume and value of mobile money transactions in the third quarter of 2020.
The overall decline in the volume and value of mobile money transactions may be attributable the decline in active subscriptions as well as introduction of mobile money transaction limits.