In a move that will definitely change the competition dynamics of local mobile money, telecash, the mobile money arm of Telecel has made it free to transfer money to a registered telecash subscriber.This automatically places telecash as the cheapest mobile money transfer option for the Zimbabwean market.
The new wave of “tariff treats” also comes with reduced tariffs for sending money to non-registered subscribers across all local networks and with the 5 cents charge placed by the regulator on all transactions being covered by telecash with that freebie. telecash will however maintain charges for cash-outs.
Through slightly cheaper services, new products like the telecash Gold Card and now free mobile money transfers, Telecel has been putting up a strong fight for the growth and success of their mobile money option. In its first six months telecash had grown to 600,000 subscribers.
Telecel was the last operator to roll out its own mobile money service, which together with the need for success of add-on services in telecoms is what seems to be driving such ambitious market growth tactics.
While any reduced financial burden will undoubtedly be welcome by subscribers, this is a rather gutsy move from Telecel. This price reduction’s long term focus in terms of subscriber growth and loyalty, if not as successful as anticipated could have a negative impact on performance that now relies more on services like mobile money and less on voice revenue.
It will be worth the watch to see how the other mobile money services like market leader EcoCash which has 4 million subscribers, responds to this price reduction.
Comments
21 responses
Great move by telecel. That’s the way to go, its unfair to be charged for sending cash and also being charged for cashing out. It makes sense to charge for cash out only
Let the Mobile Money Transfer Wars start.
In the Blue corner is EcoCash
&
in the Red corner is TeleCash
Going head-to-head & toe-to-toe
This battle can only but benefit us consumers!
Bring it on!
I dont see any war I hope people know the banking , financials and economics
Wait & C Brighton … 🙂
Hahahah …… Wants to know who will start sending money more and send for no reason because sending is free
The idea is who will start using Telecash (hence telecel) because of the zero tariff, not send money for no reason
It will encourage those who are on Telecel but have not registered for Telecash, to register for Telecash. It’s really targeted towards Telecel subscribers.
customers use an affordable platform not necessarily sending money for no apparent reason.the moment they would want to make a transaction,they will realize telecash is cheap.who doesn’t want to save a dollar.
Telecel is running away and selling out to XXXX so now creating mess in the market no strategy – See more at: http://www.techzim.co.zw/2014/08/dear-telecash/#sthash.BeXKJCMt.dpuf
is it free to transfer money from one acc to another in a bank
or its risk business by telecash, Free play kkk lol
soon they will make loses
Transfers within the same bank are free
its normal for banks not to charge for transfers. its just that we are used to Zimbabwean banks sucking us dry. They should make their money in investments not in charging us to keep our monies. Kudos to Telecash , its about time things started geting SANE around here
Good move Telecel.
Wondering though how they’ll pay agents, since bulk of fees charged by Ecocash gies to its agents. Or is it volumes within telecash are so low they can only make money on transactions going elsewhere?
Still, a plus for customers.
Agents don’t benefit from transfers, but benefit by sharing tariffs with telecel on cash outs.
Which means they’re banking on high volumes? It’s not going to end well. I reckon the EcoCash way of commissions encourages more dealers to sign up as agents than the promise of volumes.
Whats the benefit on agents from transfers?
The benefits never had benefits on transfers between customers.
the agents never had benefits on customer transfers.they are not losing commission,they are going to benefit from the high rate of customers transacting with telecash.
Hope this is not a promotion to take a swipe at their competition. great move
Good move by telecash. But i guess the monolith call Ecocash does not give a hoot
compare what was the Cashin charge before it was free….then what was Cashout then and what it is now, this will give one an idea how the math was done…it might not be really ‘free’ but transferred