EcoCash merchant transactions reviewed to Z$20 000

THE country's largest mobile money service provider, EcoCash, has been granted greenlight to facilitate once-off transaction limits of up to $20 000 for merchant and bill payments so as to enhance consumer experience. However, the $35 000 weekly limit and the sending money cap of $5 000 remain in force. This means that once a consumer exhausts the $35 000 dollar limit, he or she would not be able to transact further.

Previously, merchant and bill payments were pegged at $5 000 per transaction per day with a weekly cap of $35 000.

"Good news! Now you can transact up to ZW$20 000 per transaction for merchant and bill payments, airtime and Zesa. Send money remains at $5 000 per transaction," said Ecocash in a message sent to its subscribers yesterday.

Executives from Cassava Smartech, the parent company for Ecocash, could not immediately comment on the matter. However, close sources within the company confirmed the development.

"Yes, it's a true position but there are some background issues being fine-tuned with authorities to that effect.

"A lot of EcoCash subscribers have been pushing for this transaction review as some have been forced to do numerous transactions per day, which is an inconvenience," said an official who spoke on condition of anonymity.

Given the wider mobile phone penetration in Zimbabwe, mobile money constitutes the bulk of electronic transactions in the country and is viewed as a good instrument towards achieving financial inclusion. However, the platform has in the past been abused by illicit forex exchange dealers for speculative purposes that have been blamed for exchange rate volatility.

This has prompted monetary authorities to respond by enacting tight regulations that limit electronic transactions and have resulted in banning of mobile money agents.