Money transfer service sings the blues

ZIMPOST'S money transfer service, Zipcash, is struggling to break even due to cash shortages and failure by the South African corridor to perform up to standard, acting managing director Sifundo Moyo has said.

"Zimpost's money transfer service, Zipcash, has not experienced growth to the levels that had been anticipated, mainly because the South African corridor has not been performing well," Moyo said in emailed responses to NewsDay.

"We are currently engaged in discussions with our South African counterparts so that we can come up with measures that will increase the visibility of this service," he said.

Moyo, however, said they recently concluded an agreement with Swazi post for the exchange of international financial system transfers.

"The service is adversely affected by cash shortages as customers fail to access cash at post offices at their preferred times," he said.

Established in 2013, Zipcash is a low-cost money transfer service that allows customers to send or receive money locally and internationally through the postal network.

Currently, the company is transacting with countries such as Lesotho, South Africa, Botswana, Kenya, Nigeria and Tanzania, using the service.

Zimpost is also an agent for other international money transfer partners such as Mukuru, World Remit, Money Gram, Hello Paisa and Western Union.