As you are undoubtedly aware Ecocash has opened up its platform that enables Netone and Telecel users to register for the Ecocash services in a move that aims to enhance the fluidity of the mobile banking sector.
These moves by Ecocash may have risen as a response to an ultimatum issued by The Minister of ICT and Cyber Security, Supa Mandiwanzira early this year.The scheme does not really hit the target with regard to the ultimatum as it falls short of integrating the USSD platforms to facilitate wallet to wallet funds transfers. This is essentially Ecocash advancing their goals.
Customers from Netone and Telece may be wondering how much this platform charges them compared to what they were being charged at their respective MNO’s mobile money platforms.
Ecocash is charging the same service fees to the new users from other networks as it charges its own users. In other words, its fees are the same for everyone regardless of a user’s network.
That said, let us now take a look at the service fees charged to Netone and Telecel users of OneMoney and Telecash respectively relative to what they will be charged when they join the Ecocash platform if indeed they cross over:
| Service | Ecocash | One Money | Telecash |
|---|---|---|---|
| Sending Money ($1.01) | $0.11 | $0.06 | $0.11 |
| Sending Money ($10.01) | $0.37 | $0.20 | $0.30 |
| Wallet to Bank ($1.01) | $0.43 | $0.07 | $0.40 |
| Biller ($5.01) | $0.25 | $0.15 | $0.20 |
| Merchant ($50.01) | $1.25 | $1.05 | $0.85 |
Regardless of the differences in fees charged for transacting on all platforms, customers seem to prefer accessibility over cost. Evidence of that is the fact Ecocash with its network of distributed agents has 98% of the mobile money sector although it has the higher service fees compared to all the rest. This is before Ecocash allowed registration to its service by non-Econet subscribers.
Ecocash is the most preferred platform for mobile transactions compared to Telecelecash and OneMoney probably because they invested in rolling out a strong network of agents and merchants making their service almost ubiquitous.
An example of this is that it has more links to banks for the ‘bank to wallet’ service than the number 2 mobile money service hence it’s more accessible even in these cashless circumstances. As of now, Ecocash is linked to 10 banks, OneMoney to 4 banks and Telecash to 13 banks. Telecash is stronger in this area and may need to utilize this advantage together with their low transaction cost regime.
This is not easy for Telecash to do anymore, at least not for the mass market. Mobile money in Zimbabwe is so far a winner takes all and with Ecocash essentially becoming a bank through their mobile app, Telecel could better focus attention elsewhere.
4 comments
The way you are advocating for an ecocash monopoly worries me, it seems you are not aware or even worried of the disadvantages that come with having a monopoly. It makes me wonder why you are making it so clear that you are on their payroll. Very soon when they have achieved their monopoly they will simply throw you away kkkkk.
Don’t even think the Minister will be so naive to buy the crap that you are trying to sell as compliance to the interoperability directive.
Hi Worried.
When we write sponsored articles we label them as such. This is important to us because our name is worth more to us than any money any brand could ever pay us.
About the Ecocash monopoly as you put it: Every business including Techzim wants to achieve monopoly. Regulation of such is the responsibility of governments. In the technology space it is not very clear how that regulation could be developed and if indeed it is the best thing. Network effects the way they play out for tech businesses particularly internet ones result in a winner takes all set up. Unfortunately (or is it) that’s how mobile money has developed in Zimbabwe.
I hope I will get some time to write an article that discusses the whole concept of monopoly and the legislation surrounding that. Please stay tuned
There are simpler solutions to these issues. The same way banks utilise ZIMSWITCH as an automatic clearing house and the Zimbabwe Electronic Transfer Settlement System (ZETSS) systems to reconcile trasactions on a daily basis and settle their net positions, the same can also be developed for mobile money providers.
With all due respect. Sponsored or not sponsored this is the plain truth, who uses telecash or one money or who has ever been asked if they have the above so someone sends you money. Ecocash is synonymous with mobile money