Zimbabwe: Agents to Enter Into Multiple E-Wallet Contracts

This comes after the Reserve Bank of Zimbabwe said any agent may offer services to multiple payment system providers provided that the agent has separate contracts for the provision of such services with each institution and the agent has the capacity to manage the transactions for the different payment system providers.

But where a payment system provider requires entering into exclusive arrangements with an agent, the provider shall apply to the central bank justifying why such an agreement is necessary.

The RBZ shall then consider such application and may approve or dismiss the application, the central bank said today.

"It has come to the attention of the Reserve Bank that some mobile payment system operators are entering into agreements with agents in terms of which the agent is precluded from acting for any other mobile payment system operator," said RBZ.

"The said exclusivity agreements or covenants are likely to have an adverse effect on competition and may be detrimental to the smooth operation of payment systems in the country.

"Exclusivity agreements will consequently hamper the Reserve Bank\'s efforts of promoting financial inclusion and the expansion of financial services in the economy."

The RBZ said where an agent provides services for more than one payment system provider; such an agent may enter into a confidentiality agreement with each of the payment system providers for whom the agent will act. Further, any payment system provider seeking to contract an agent which has already been contracted by another payment system provider to carry out agency services shall assess the capacity of the agent to manage transactions for different payment system providers.