Source: NPS payments decline – DailyNews Live
Paul Nyakazeya 9 March 2018
HARARE – The value of transactions processed through the National Payments
System (NPS) declined by five percent, to close the week ending February
23 2018 at $1, 628 billion according to the latest Reserve Bank of
Zimbabwe’s (RBZ) Weekly Economic Highlights.
RBZ said the decline was mainly driven by a 1,7 percent decrease in the
value of Real Time Gross Settlement (RTGS) transactions, to $1,154 billion
from $1,174 billion during the week ending February 16.
Most bank’s RTGS systems are clogged resulting in transactions taking up
to three days to be cleared. Many Zimbabweans are relying on this mode of
payment for virtually all transactions due to the persistent cash
shortage.
The total volume of NPS transactions registered a 12 percent from 25 161
284 transactions recorded in the previous week to 22 171 092 during the
week under review.
The proportions of NPS transactions in volume terms were, mobile 89,24
percent, point of sale, 9,94 percent, RTGS, 0,42 percent, automated teller
machine, 0,38 percent and cheque 0,02 percent.
The distribution of NPS transactions in value terms was RTGS, 70,88
percent, mobile, 22,54 percent, POS, 6.30 percent ATM, 0,22 percent and
cheque 0,06 percent.
While mobile transactions have been embraced as an alternative payment
option, concerns continue to be raised over the high electronic
transaction charges.
Due to a cash crisis in Zimbabwe, most service providers in both the
public and private sector have adopted mobile money as a means for
processing payments placing the channel as the most common alternative for
the country’s unbanked population and the nation’s significant informal
sector. An acute shortage of bank notes in Zimbabwe has forced Zimbabweans
to resort to electronic means of payment.
According to the Postal and Telecommunication Regulatory Authority of
Zimbabwe’s mobile money now accounts for about 80 percent of total
transactions in Zimbabwe.
Meanwhile During the period under review, commercial bank weighted lending
rates for individual clients stood at 9,57 percent, down from 9,58 percent
recorded in the previous week. Weighted lending rates for corporate
clients, however, remained unchanged at 6,93 percent, during the same
week.
– Financial Gazette
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