Zimbabwe embraces plastic money

05 Jul, 2015 - 00:07 0 Views

The Sunday News

THE value of mobile and internet based transactions rose by 43,2 percent in the first four months this year compared to the same period last year, an indication that there was a growing number of people embracing the use of plastic money, latest figures from the Reserve Bank of Zimbabwe show.

According to the RBZ, the value of mobile and internet based transactions for January to April 2015 increased to about $1,83 billion as compared to $1,2 billion in 2014.

Card based transactions increased from $430,27 million in March 2015 to $433,66 million in April 2015.

In an interview, Bankers Association of Zimbabwe advocacy officer Mr Clive Mphambela said efforts were being put in by banks to promote alternative channels to encourage a broader reach of their services.

“It is reflective in efforts being put by banks and financial institutions to improve financial inclusion and it is a trend that we would like to see continuing,” said Mr Mphambela.

He said it was commendable that a lot of people were embracing plastic money as it was more convenient.

Plastic money is a generic term used for all types of cards; credit, debit and smart cards.

“As BAZ we have been driving the use of plastic money as it is not only about convenience but brings more people into the habit of banking,” said Mr Mphambela.

Outlining some of the advantages of using plastic money, Mr Mphambela said credit and debit cards offered hassle-free shopping and there was widespread access through the Zimswitch network.

“The Zimswitch network comprises 19-member banks, which have deployed over 4 000 Zimswitch enabled Point of Sale devices nationwide in all the major regional and local retail outlets. In addition there are close to 400 Zimswitch compliant ATMs, some of which are located in remote areas so that banking services are within the reach of many people,” he said.

Other advantages include security as cash carries a big risk of loss as well as flexibility as plastic cards give access to one’s money at many different access points.

Meanwhile, the RBZ reported that broad money supply increased by 1,57 percent from $4 370,32 million in March 2015 to $4 438,84 million in April 2015 while on an annual basis, there was a decline of 6,75 percent in March to 4,93 percent in April.

“The annual growth in broad money was mainly driven by increases in long term deposits, of 41,45 percent and savings deposits, 13.40 percent. Short term deposits registered a decline of 2,50 percent over the same period.

The structure of deposits remained largely the same, with demand deposits accounting for 46,29 percent; long term, 22,23 percent; short term, 17,95 percent; and savings deposits, 13,50 percent of total deposits,” said the RBZ.

Bank credit to the domestic economy increased by 9,15 percent to $ 4 529,78 million in April 2015, from $4 371,03 million in March 2015.

 

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