Friday 1 August 2014

Mobile money innovation for financial inclusion


Zimbabwe’s mobile telecoms companies are changing the way banking should be done and they are making banks burn in the heat out of their innovation. The landscape of banking has surely changed as they keep introducing products that will make almost each Zimbabwean have a mobile money account. Telecel and Econet should be applauded for being the biggest engineers towards the quest for financial inclusion in Africa and Zimbabwe. They both have mobile money wallets which have been received well in Zimbabwe and the informal sector has taken advantage of this convenient product. Mobile money uptake in Africa has been slow with the pioneers M-Pesa enjoying brisk business in Kenya and so has Econet and Telecel. This kind of financial innovation should be spread across Africa and countries that have not caught wind of this should take leaf from the companies that have made it like M-Pesa Econet Telecel and Vodacom among others.

Telecel was the first mobile operator to introduce a debit card which could work on any POS device and ATM as long as it is Zimswitch compliant and this made banking easy. It partnered with other banks so that cash can be transferred from bank to mobile wallet or from mobile wallet to bank which is financial innovation at its best. This has also enabled clients to take advantage of channels such as Internet banking, ATMs and Mobile money wallets from their banks to transact with Telecash. The card is meant to cater for shopping bill payments as long as they are POS devices that are Zimswitch compliant which means it can do the same functions like a bank debit card.



Ecocash also has not lagged behind but it’s also appreciating competition from Telecel as it has set the bar high by introducing a Ecocash Mastercard Debit card. This means that the MasterCard will be linked to a mobile wallet account making it a first in Africa. The card will cater for both local and international transactions, thereby allowing access to anyone with a Ecocash account to be able pay for goods even via the internet using the MasterCard. The card also helps Zimbabweans who travel across borders in having paperless money as they will be making use of the card, bringing safety and security to them.




We have seen that M-Pesa has introduced BitPesa for Bitcoins which is the latest innovation in the market world and with Econet having a MasterCard linked to the Mobile wallet we await to see the next move from Telecel as they are also a force to reckon with in financial inclusion and innovation. Support should be given to these innovators as this will complete the cycle of financial inclusion in Africa.  

No comments:

Post a Comment