Innbucks scraps charges for remittances

Source: Innbucks scraps charges for remittances | The Sunday Mail

Sunday Mail Reporter

LOCAL fintech solution and microfinance platform InnBucks yesterday started offering remittance services for free.

Only US$1 will be levied for first-time use, which, however, allows unlimited transactions within the month.

Last year, Innbucks reduced charges for sending amounts over US$5 from 5 percent to 3 percent. Sending US$5 or less attracted only 1 percent, but this has since been scrapped.

InnBucks chief executive officer Ms Daisy Zinyemba said the move is designed to help clients save money from charges and retain full value while making the platform competitive.

“Our new business proposition is that starting today (yesterday), June 15, InnBucks will charge only US$1, allowing customers unlimited transactions in the transacting month,” she said.

“There will be no hidden fees. Clients only pay US$1 for transaction charges within the month. Customers’ account limits will remain the same: US$1 000 for non-KYC (without a know-your-customer verification requirement) and US$2 000 for fully KYC’d customers (verifying identity of new customers).

“The US$1 only applies to transacting customers when they initiate their first transaction and will only be applied to customers with positive balances; thereafter, all transactions within the month will be free.”

However, the 2 percent intermediated money transfer tax will still apply to all transactions.

A transaction in this case is any financial activity in the wallet (deposit, withdrawal, payment, buy for friends, et cetera)

“Customers can now make unlimited transactions within their account limits,” Ms Zinyemba said.

“Direct deposits are still not allowed.”

Founded by Simbisa Brands, a listed fast foods and beverages company with a footprint in Zimbabwe and across 10 African countries, Innbucks, which is also licensed as a deposit-taking microfinance institution, now offers various services, including digital payments, savings accounts, mobile wallets, micro-loans, mobile banking and airtime purchases.

It has become one of the popular fintech platforms. The remittance market in Zimbabwe is huge.

Diaspora remittances are estimated at over US$1 billion per annum, or 16 percent of total foreign exchange receipts.