Mobile transactions decline

Published: 11 June 2019
THE value of transaction processed through the National Payment System (NPS) have declined by 11,3 percent to $4,6 billion during the week ending May 24 from $5,1 billion recorded the previous week.

In its weekly economic highlights, the Reserve Bank of Zimbabwe (RBZ) said the decline was despite transactions processed through the Real Time Gross Settlement (RTGS) increasing to $3, 5 billion, up from $2, 97 billion the previous week.

"In value terms, RTGS payments accounted for 68,19 percent of the total value of transactions processed through the NPS.

This was followed by mobile 23,37 percent, point of sale (POS) 8,33 percent, automated teller machines (ATMs) 0,08 percent and cheque 0,02 percent," the central bank said.

According to the RBZ, NPS transaction volumes decreased by 7, 66 percent, to close the week under review at 38, 5 million.

In terms of contributions to the total volumes of NPS transactions, mobile transactions were highest at 84, 85 percent followed by POS 14, 72 percent, RTGS 0, 34 percent, ATM 0, 08 percent and cheque 0, 01 percent.

Meanwhile, during the week under review, average deposit rates for deposits of one and three months' tenor increased to 4, 10 percent and 4, 24 percent respectively.
 
Deposit rates for savings deposits, however, remained unchanged during the same week.

During the week under analysis, commercial bank weighted lending rates for individual clients fell to 9, 28 percent and 9, 32 percent.

On the other hand, weighted lending rates for corporate clients also declined 7, 27 percent from 7, 31 percent recorded the previous week.

The increase in virtual transactions is reflective of the growing migration to electronic payments from cash transactions due to the persistent cash shortages.

Zimbabwe adopted a multiple currency regime in February 2009 to escape hyperinflation with the greenback dominating transactions.

But availability of US dollar notes started declining in 2015.

This was compounded by huge imports as well as the export of currency from the economy.

In response to the worsening cash crisis, government and the RBZ have encouraged the use of plastic money, which resulted in the roll out of more point of sale terminals in supermarkets and retail businesses.

Presenting his 2019 Monetary Policy Statement this year, RBZ governor John Mangudya said the central bank was encouraged by the quantum leap in the usage of electronic and mobile banking systems by the county's banking public.

Last Friday, President Emmerson Mnangagwa said government would introduce a new currency before the end of the year.
- dailynews
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