ZAMBIA:NFS will lower transaction costs
BANK of Zambia says the national financial switch (NFS) roll-out will help lower the cost of transactions and infrastructure acquisition in the financial sub-sector.
The NFS is a shared payment system infrastructure aimed at interconnecting various payment streams such as automated teller machines, point of sale equipment and mobile payments.
The BoZ is working with the Zambia Electronic Clearing House Limited, the Bankers Association of Zambia and mobile operators to ensure the NFS connects Zambia’s financial sub-sector.
BoZ deputy governor for administration Tukiya Kankasa-Mabula said once fully implemented, the NFS will promote the development of innovative domestic-based financial services that provide a higher level of convenience and efficiency to customers such as mobile banking, internet and mobile money, among other benefits.
Speaking when she officiated at the third Apex mobile, card and payments conference last week, Dr Kankasa-Mabula said the initiative will act as a platform for value addition.
“It is our belief that the NFS will help drive growth in volumes of financial transactions, resulting in economies of scale that should eventually benefit both the service providers and consumers. It will also provide more affordable financial services arising from the shared platform owned by industry players,” she said.
Dr Kankasa-Mabula said the initiative is important in enhancing access to channels through which retail payments can be made in a safe and efficient environment.
“The implementation of NFS emanates from government policy. One of the key objectives of the national vision and strategy 2013/17 is the development of a retail payment system.
“The switch will interconnect all banks’ electronic payment channels, lowering transaction costs to business and customers and thereby making the adoption of alternative payment solutions more widely accessible,” Dr Kankasa-Mabula said.