Cross network mobile money transactions up by 92%

Business Reporter

Cross network mobile money transactions recorded a growth of 92.1% in the fourth quarter of 2020, owing to RBZ statutory instrument (SI) 80 of 2020 which set to deal with indiscipline in mobile money transactions that for long fuelled inflation in the local market.

In a bridged postal and telecommunications sector performance fourth quarter 2020 report released by the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) yesterday, cross mobile money transactions grew on the back of monetary authorities’ policy intervention.

Government, through the central bank introduced SI 80 of 2020 to arrest price distortions and stabilise the foreign currency rate in the market.

“Cross network mobile money transactions are expected to increase gradually as interoperability is fully implemented in line with Statutory Instrument 80 of 2020 on Banking Money Transmission, Mobile Banking and Mobile Money Interoperability Regulations,” read part of the report.

Although growth in the value of mobile money transactions was recorded in the quarter under review, the volume (number) of processed transactions declined.

The total number of active mobile money subscriptions at the close of 2020 is much lower than that recorded in December 2019.

Telecash was the only operator to record a decline in active mobile money subscriptions, whereas One Money recorded the biggest growth of 9.6%.

The central bank closed a number of Ecocash agent lines, capped mobile money transfer limit and bank transfers in a bid to stabilize the local market.

Though initially there was an outcry when the policy was first introduced, the transacting public soon realized the rationale of the policy through decrease in transactional costs.

The total number of active mobile money subscriptions as at 31 December 2020 was 6,495,682. This represents a 2.7% growth from 6,325,666 recorded as at 30 September 2020.