More Zimbabwe companies paying salaries using mobile money

FEB 04,2014.

ITWEBAFRICA.

 A ‘cash crunch’ in Zimbabwe is forcing more local companies to turn to mobile money to pay workers’ salaries.

This is according to officials at Econet who say that use of their ‘EcoCash Payroll’ service has risen 82% amid “liquidity problems” facing banks in the country.

Econet Services chief executive officer, Darlington Mandivenga, said last week that EcoCash user numbers had now surged to 3.5 million.

However, competition in the mobile money space in Zimbabwe is expected to also heat-up following the launch of Telecash by Telecel Zimbabwe last week.

Mandivenga said on Monday that EcoCash Payroll guaranteed receipt of salary payments by employees.

In the meantime, Zimbabwe’s central bank has warned struggling local financial institutions to merge or urgently shore-up their capital bases.

"Last month (January 2014) we saw an 82% increase in the number of companies using EcoCash Payroll. People who are paid first by EcoCash Payroll are guaranteed access to their money,” Mandivenga said.

“If they then want to move some of it to a bank, it is up to them, but it is important that people know they can get their money. We guarantee that you will get access to your money," added Mandivenga.