20 March 2017

Zimbabwe: Zimswitch Carries Out Cross Border Payment Trial

ZIMSWITCH is carrying out a trial for its cross border payment system as it moves closer to linking local banks to a regional payment platform to facilitate smooth flow of transactions across the SADC region.

The cross border payment system will enable Zimbabweans to transact within the region using their bank cards on Zimswitch.

In an interview with The Herald Business, Zimswitch projects and product development manager Mr Terence Manhanga said this will also reduce dependency on international card payment systems like Visa and Mastercard.

"Your Zimswitch card should be able to work in any of the SADC countries without resorting to other card associations like VISA or Mastercard.

"Right now we have implemented a gateway and we are in the process of testing with what we call the regional clearing house in South Africa.

"We are in the process of testing how the cross border transaction works and once we, as Zimswitch, are satisfied, we will involve the local financial institutions in the testing," he said.

When successfully launched, the payment system will enable Zimbabweans to transfer money across SADC, do point of sale transactions as well as access cash from any country within SADC region.

Completion of the project is, however, also dependent on the progress made in other SADC countries, who are Zimswitch's partners in this project.

"We are working on this platform in the region and no country is ready yet, so depending on the progress happening in the region we will start transacting," he said, adding the project was targeted at low value transactions.

"Right now we have other platforms for high value transactions. It does not make sense to be charged say $40 when you want to send $30 to a child in school in South Africa.

"It also reduces dependency on these international card payments which sometimes leave us stranded when we need them," said Mr Manhanga.

At an opportune time, Zimswitch will partner global operators like World Remit for the project, whose priority is currently the region.

Meanwhile, Zimswitch has also been affected by the cash challenges that have been prevailing in the country as its volumes in cash transactions significantly reduced.

But the increase in use of plastic money has had a compensatory effect on the business.


Marimba Festival Challenges World Record

History was made last Thursday as Zimbabwe became the first country in the world to have the largest marimba ensemble to… Read more »

See What Everyone is Watching

Copyright © 2017 The Herald. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.