RTGS slump drags NPS payments

Source: RTGS slump drags NPS payments – DailyNews Live

BUSINESS WRITER  29 August 2017

HARARE – The total value of transactions processed through the National
Payment System (NPS) decreased 33,3 percent to $1,2 billion in the week to
August 18, from $1,6 billion in the previous week, as Real Time Gross
Settlement (RTGS) payments slumped.

Central bank data for the week under review indicates that RTGS payments
were down 35 percent to $794,6 million, tumbling from $1,2 billion in the
prior week, as depositors made more use of mobile money payment systems.

“The RTGS system payment stream accounted for 65,74 percent of the total
value of transactions processed through the NPS. Contributions of other
payment streams were as follows: Mobile, 18,1 percent; point of sale
(POS), 15,6 percent; automated teller machines (ATMs), 0,47 percent; and
cheques, 0,06 percent,” the Reserve Bank of Zimbabwe said in its report
for the week under review.

NPS transaction volumes amounted to 18,7 million during the week under
review, up from 16 million transactions registered in the previous week.

In terms of volumes, mobile money payments dominated the NPS transactions,
accounting for 68,04 percent.

This was a 38 percent increase on prior week, contributing 12,7 million
payments from 9,2 million the previous week.

However, in terms of value, mobile money payments accounted for $218 770
of the $1,2 billion processed through the NPS.

As RTGS accounted for a paltry 0,38 percent of the total NPS volumes, the
channel recorded a 46 percent volume decline from the prior week’s 130 363
payments to 70 339, making up 0,38 percent of the total volumes.

Contributing 5,7 million transactions to the NPS, POS payments made up
30,8 percent of the NPS volumes, down from 6,4 million in the prior
comparable week.

Cheque payment contribution to NPS volumes declined 51 percent to 3 754
from 7 619, constituting 0,02 percent of the processed volumes.

ATM volumes through the NPS were also down four percent to 140 734 from
147 269.

Value-wise, ATMs accounted for $5,7 million of what passed through the
NPS.

This comes as the country’s electronic transactions surged 36 percent to
$7,5 billion in the first six months of the year as locals migrate to
cash-lite payments on the back of an acute cash shortage.

With close to 80 percent of the transactions now electronic, only 20
percent of Zimbabwe’s transactions are now conducted using cash.

Since the country’s cash shortages began last year, cash-obsessed locals
have been forced to migrate to alternative payment methods with the RBZ
aggressively lobbying for a migration to cash-lite transactions.

However, the country’s financial institutions are still struggling to
process the increasing demand from electronic payments.

The central bank is also moving to review electronic transaction fees
downwards, in a move aimed at promoting cash-lite payments.

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