Eco-cash tariffs criticised

VALUE ADDED SERVICES

|
Image: By BiztechAfrica
Eco-cash tariffs criticised

By Alfonce Mbizwo, Harare, Zimbabwe

Zimbabwe’s largest mobile network, Econet Wireless, has launched its mobile money transfer service called Eco-cash, joining the rush to tap into Zimbabwe’s unbanked market.

At an analyst briefing on Monday, officials said the company had deployed 500 agents throughout the country. They also announced partnerships with Zimpost, which has over 300 offices countrywide, TN Holdings, which has presence in major centres in the country, and also with 300 independent agents.

At the launch, Econet chief executive Douglas Mboweni said the company considers the unlocking of access to financial services to be a "serious need".

“The banking population in Zimbabwe is very low, with only 14 people in every 1 000 being banked.

“Zimbabwe’s mobile penetration rate is at 70%, yet with that, we only have 1.4% of the population being banked,” Mboweni said.

He said between 60% to 65% of people reside in rural areas in Zimbabwe and that figure would remain stable for the foreseeable future.

Eco-cash immediately came under fire for being too expensive compared to regional competitors.

Financial Express compared Econet’s service Safaricom of Kenya’s M-PESA:Where EcoCash will charge percentages of the money being transferred, M-PESA has fixed charges for transaction ranges.

To transfer US USD200 to an EcoCash subscriber, a subscriber will be charged US4. For the same transaction, an M-PESA subscriber will be charged US 30 cents.

To transfer USD200 to a non-EcoCash subscriber, a subscriber will be charged USD14. For the same transaction, an M-PESA subscriber will be charged US $1.80.

To withdraw USD200 cash, an EcoCash subscriber is charged USD6. An M-PESA subscriber is charged USD1.70 for the same transaction.

    However, Econet’s mobile cash transfer transaction facility does not oblige a subscriber to open a bank account and the service is across various mobile networks.

    State-owned NetOne already runs a similar service titled OneWallet while Telecel launched its own service called Skwama in partnership with a local financial institution, Kingdom Bank.



    Share the News

    Get Daily Newsletter

    comments powered by Disqus

    MORE VALUE ADDED SERVICES NEWS

    MTN Swaziland offers mobile financial services with Ericsson

    MTN has deployed Ericsson Converged Wallet to provide a premium mobile money experience for more than 275,000 mobile wallet users and 3,000 agents in Swaziland. Read More

    Airtel, Kenya Red Cross launch public emergency information service

    Bharti Airtel has teamed up with Kenya Red Cross Society to launch the first of its kind public emergency information service in Kenya. Read More

    EcoCash gets SA approval

    EcoCash and its South African partners have secured approval from the South Africa Reserve Bank to start a cross border remittance service from South Africa. Read More

    KTDA, Safaricom partner on cashless payment

    Leading tea management agency, Kenya Tea Development Agency (KTDA), has partnered with Safaricom to roll out a cashless payment solution at all its 66 factories across the country. Read More

    Airtel launches first mobile tap and pay system in Ghana

    Airtel Ghana has added another first to its credits as it has rolled out an innovative service through their Airtel Money that allows a tap and pay, contactless payment based on the Near Field Communications (NFC) technology.  Read More

    Vodafone gives hope to Ghanaian Farmers with Vodafone Farmers Club

    Ghanaian farmers can now receive relevant crop and location specific information in their own language through a bespoke SIM card. Read More

    Standard Bank introduces a first in SA: smart watch banking

    Standard Bank today announced plans to embrace wearable technology, with the forthcoming release of its Apple Watch banking app in SA. Read More

    Prepay Nation, Airtel Kenya to offer international mobile top-up

    Prepay Nation, a leading provider of cross-border prepaid mobile airtime transfers, has announced its partnership in Kenya with Bharti Airtel. Read More

    SimbaPay launches international access to M-Pesa PayBill

    SimbaPay has launched the first product to allow Kenyans living abroad to make M-Pesa PayBill payments.  Read More

    HomeSend named Best Payment Product in Africa

    HomeSend, an international transfer hub created by MasterCard, eServGlobal and BICS, has been named “the Best Payment Product in Africa” at the Asian Banker Middle East and Africa Awards.   Read More

    PRESS OFFICES

    Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

    FEATURED STORY

    IHS plans to inject fresh $500m to grow capacityIHS plans to inject fresh $500m to grow capacity

    Mohammed Darwish, managing director of IHS Towers, says the firm will soon inject another $500million into the business after raising some $2.5billion to finance expansion drives. Darwish spoke with biztecafrica.com in Lagos.

    IN DEPTH

    As curtain falls on MDGs, what next?As curtain falls on MDGs, what next?

    Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.