POS transactions value hit $3 billion in H1

TINASHE MAKICHI

The increased use of plastic money in the market driven by the current cash challenges has propelled the value of transactions processed through Point of Sale terminals (POS) to $3 billion in the first half of this year to June 2018, up 64 percent from last year’s figures, payment service firm ZimSwitch has said.

In the same period last year, the value of transactions was $1,8 billion.

According to ZimSwitch, there has been a 76 percent increase in the volumes of POS transactions to 105 254 377 from 59 848 732 last year.

The value of ATM transactions for the period was $2 billion, representing a 216 percent increase as most banks started dispensing cash on their respective machines. This comes after the Reserve Bank of Zimbabwe increased monthly cash imports to $150 million from $100 million, as efforts to ease cash shortages in the country continued. The central bank recently said it would continue to work on measures to improve the availability of cash, but has been emphasising the need for Zimbabweans to use plastic money when transacting.

Ever since, most banks have been dispensing cash with some depositors managing to withdraw up to $300 in bond notes. The improvement in liquidity is also attributed to the support from the African ExportImport Bank and exports of gold and tobacco.

Value of internet transactions was up 443 percent to $102,6 million as the general Zimbabwean populace becomes well versed with using internet channels to facilitate transactions.

Confederation of Zimbabwe Retailers (CZR) president Denford Mutashu said there had been a massive adoption of plastic money in the market.

“Indeed almost all registered retailers around towns and cities are using POS machines except for those in the rural areas where there are network and power supply issues.

“Instead those have embraced mobile money where we have seen a tremendous rise in transactions attributed to plastic and mobile money.”

Value on credit push was up 400 percent at $1,5 billion during the period under review from $304 million of the same period last year. ZimSwitch is the sole national electronic funds switch and clearing house for Zimbabwe. The company processes domestic card based (ATM and POS) and EFT transactions for member financial institutions in real time online.

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