Zimbabwe to import more point of sale machines

Zimbabwe's banking industry will soon be importing more point of sale (POS) machines to reduce reliance on cash by the transacting public in line with the Reserve Bank of Zimbabwe (RBZ) measures to promote the use of plastic money.

Officials in the financial services industry confirmed to reporters over the weekend that bankers agreed last week to import more POS machines to reduce reliance on cash   transactions in light of the current liquidity challenges.

Graduate School of Management Director, Dr Nyasha Kaseke said the use of plastic money in the form of credit, debit and pre-paid cards is important because it is convenient and less risky than cash transactions.

"That is the way to go, otherwise this economy may not function smoothly," he said.

Research carried out by a private financial consulting firm revealed that about 70% of transactions by the rural population are through cash.

However, an economic commentator, Mr Tapera Chikandiwa said the reduction by the Reserve Bank of Zimbabwe (RBZ) on electronic and other transaction charges, is a reflection of  commitment and confidence that non-cash transactions will ease the liquidity challenges.

"There is no other way to solve the cash challenges than opting for the use of the plastic money, and this is  critical on economic development," Mr Chikandiwa said.

In several parts of the world, plastic money is widely used, with South Africa and Kenya having achieved major successes.

The RBZ is targeting to achieve 80 percent use of plastic money in five years.