TINASHE MAKICHI
The increased use of plastic money in the market driven by persistent cash challenges in the market saw the value of transactions processed through Point Of Sale terminals (POS) to about $7 billion for the full year to December 2018 from $4,8 billion of the same period last year, according to statistics from Zimswitch.
The increase in POS transactions during the period was also driven by the sudden demand in basic commodities in the market towards the end of 2018 which saw people disposing of their RTGS balances.
According to the payments services company figures, there was an increase in the volumes of POS transactions posting a 116 percent increase to 216 201 397 from 168 980 527 of the full year 2017.
The value of ATM transactions for the period were $1 billion which was a decline from $6,2 billion of 2017 as most banks during the period under review were no longer dispensing cash at their respective ATMs. Most financial services used ATMs just for checking their account balances.
The value of internet transactions were also up at $227 million from $91,5 million in 2017 as the general Zimbabwean populace becomes well versed with using internet channels to facilitate transactions. Volumes of internet transactions were at 596 295 from 357 689.
Mobile transactions value for the period under review were up 96 percent recording $3,5 billion from $1 billion of 2017.
Volumes of mobile transactions were sitting at 7 620 663 from 4 795 347.
“The increase in value of transactions probably owes to the deepening cash shortages during that period and people opted to use digital platforms. The picture has however changed owing to the introduction of the IMTT [Intermediated Transfer] tax,” said economic analyst Richard Mawarire.
The Zimbabwean society has for the past three years been adopting the idea of adopting plastic money among other payment platforms to do business.
The Reserve Bank of Zimbabwe has been promoting measures to further accelerate efforts towards a cash-lite society through adoption of friendly banking and plastic money payment platforms such as tap-andgo systems and pre-funded cards to enhance the ease of transacting and ease of passage at toll-gates within the country.
