ZIMBABWE:NPS payments dragged down by slump in RTGS
THE value of transactions processed through the National Payment System (NPS) in the third week of October declined by 10 percent from $1,9 billion in the previous week to $1,7 billion due to a decline in Real Time Gross Settlement (RTGS) transactions.
In their latest weekly economic highlights report, the Reserve Bank of Zimbabwe said
RTGS transactions declined from $1,29 billion in the previous week to $1,16 billion during the week under review, accounting for 68 percent of the value of transactions processed through the NPS.
Point of Sale (POS) transactions accounted for 12,78 percent of value processed, while Automated Teller Machines made up 0,27 percent and cheques, 0,07 percent.
The volume of NPS transactions declined by eight percent, to close the week under analysis at 24 778 293. Mobile transactions contributed 71,76 percent of the total volume of NPS transactions, POS accounted for, 27,29 percent, ATM —0,46 percent — RTGS, 0,46 percent. and Cheque, 0, 02 percent.
Due to a cash crisis in Zimbabwe, the increased use of alternatives for cash transactions, mainly mobile money and POS, has increased significantly over the past year.
Mobile money now accounts for about 80 percent of total transactions in Zimbabwe.
The Postal and Telecommunication Regulatory Authority of Zimbabwe’s (Potraz) second quarter industry report said the country recorded increases in mobile money transactions, as locals resorted to electronic transactions in the wake of a crippling bank note shortage.
Potraz’s report indicate that cash-out transactions were up 11,2 percent, closing the quarter at $285,5 million, from $256,7 million recorded in the first quarter of 2017.
Cash-in transactions also came in higher at $290,7 million compared to $258,6 million recorded during the first quarter
Most service providers in both the public and private sector adopted mobile money as a means for processing payments placing the channel as the most common alternative for the country’s unbanked population and the nation’s significant informal sector.