According to POTRAZ’s latest sectoral report for the third quarter of 2016, there has been a decrease in the value of transactions done on mobile money (m-money) platforms for both cash-ins and cash-outs.
Cash-Ins decreased by 4% from $460,240,971 in the second quarter of 2016 to $441,880,904 in the last quarter.
Cash-outs decreased by 3.9% from $447,733,077 in the second quarter of 2016 to $430,050,390 in the last quarter.
The transactions recorded by POTRAZ apply to mobile operators m-money platforms which include EcoCash, Telecash and OneWallet. EcoCash accounted for 99% of the total value of transactions recorded whereas Telecash had 0.9% and OneWallet had 0.1% respectively.
This is the first time there has been a decrease in the value of mobile money transactions and may be a consequence of the cash crisis that intensified during the recorded third quarter (July, August and September).
There was less cash circulating which meant fewer people were willing or able to cash-in and fewer agents were willing or able to facilitate cash-outs. There was also a lot of public anxiety over the imminent release of bond notes which may have contributed to people’s hesitation to conduct cash-ins in USD cash.
However, despite the decrease in cash-ins and cash-outs, which represent the movement of physical money, there was an increase of 162.8% cross-network transactions (virtual money transfers). The value of cross-network transactions increased from $1,273,289 to $3,346,763.
TechZim was under the impression that mobile money platforms would have done well in this time but the numbers tell a different story.
Download POTRAZ Q3 Report here: POTRAZ Q3 2016 Report
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8 comments
“TechZim was under the impression that mobile money platforms would have done well in this time but the numbers tell a different story.”
But why would you think think that just because cash in an cash out are down, they have not done well? That reasoning is way too linear. These aren’t the only activities where they make their money – in fact they make NOTHING from cash in anyway. Consider how many MORE remittances are coming straight to mobile money now (with a bonus on top) as well as people transferring from bank account to mobile wallet – and then the MASSIVE increase in the use of mobile money to buy goods, pay bills, pay workers, pay rent, buy zesa etc. In the past quarter ALL my bill payments, 80% of my grocery purchases and all my payments to domestics have been by ecocash chete but I haven’t cash in or out in like 5 months! So cash in/out are down but I would imagine these guys are making more profit than ever in spite of that!
In your second last paragraph you even show numbers that cross network transaction (which they also make money from) more than doubled but still you conclude that they haven’t done well?
I suspect the author has limited knowledge with regards to how banks make their profits.
Can you please send us the potraz report in pdf i cannot get it on the potraz site. Thanks in advance.
Hi Richard, please find attached now
Noted thanks
maybe the idea was not across properly bt the basis is correct there has been a reduction in its use which shows people are now removing money from the formal system and hording it which is a bad sign and now that its cheaoer to do a withdrawal at a bank and not pay “tip/yemusana” yes mobile transactions will stutter.
you got it all wrong, as more people use plastic money the banks and mobile money platforms will make lots of money. That is why econet was buzy pushing for a cash less society agenda since the inception of ecocash that is where all the money is and not cash in/out. This situation will leave the agents redundant and mamy of them might close shop. and you don’t need a rocket scientist to tell you whats going to happen to unemployment rate. it never rains to a zimbo.
Why are people still using Ecocash. MyCash from Meikles Financial Services is so much cheaper and it operates over the Zimswitch platform, so can be used anywhere where there is a Zimswitch POS terminal. Plus you can transfer for free between MyCash accounts as well as being able to Zipit to other bank accounts for a fixed rate of $1.00. MyCash is available at any TM – Pick n Pay Supermarket. It is free to sign up and no monthly charges. When you use your MyCash card at TM Pick n Pay, you do not pay Zimswitch charges.