Zimbabwe’s electronic banking sector has reached climax after the Reserve Bank of Zimbabwe (RBZ) reported a massive 96% surge in transactions being processed through mobile banking platforms, internet banking and point of sale machines.
This development is further fueled by the prevailing cash crisis which has left the transacting public with no option but resort to cashless transactions.
Speaking ahead of the Monetary Policy Statement presentation, the Reserve Bank Governor, Dr. John Mangudya said the central bank is confident of pushing Zimbabwe towards a total cashless economy after realizing an increased usage of electronic banking systems in 2018.
“The growth in the use of plastic money, away from cash transactions, was phenomenal in 2017 to the extent that more than 96 percent of the $97,5 billion – from the 1 billion transactions – processed in the entire country in 2017 were through electronic and mobile banking systems,” explained the RBZ boss.
He further added that despite going through a lot of challenges, the economy had done exceptionally well in adopting plastic money, not as a substitute to cover for cash shortages but rather a solution to promote ease of doing business across all sectors.
“This is largely attributable to collaborative efforts, commitment, action and market innovation which have continued to drive the plastic money revolution,” added Mangudya.
The governor also highlighted that the increased reception of electronic banking systems by the transacting public will contribute heavily towards the central bank’s proposed strategies to save foreign currency and accelerate growth of local industries through provision of adequate nostro reserves to support critical imports like raw materials.
He summed up by mentioning that the adoption of e-payment systems has ushered in convenience to the public since almost every transaction can be carried out in the comfort of the user’s home. This has also de-congested banking halls where prolonged queues used to be the order of the day.