Zimbabwe going plastic

Cash shortages on the market have forced everyone including the worst technophobes who heavily distrusts a system where money is only a small chip on a credit card. Admittedly there is just a certain feeling about handling hard cash which old timers will miss. So for now they still insist in standing in queues at the banks. On the bright side, just think of never having to handle another filthy dollar note again in this lifetime.The gaps

But if you like doing business with the informal sector, then plastic money may prove to be a difficult proposition. That means the little shops mostly run by foreigners in the area bound by Robert Mugabe and Kenneth Kaunda and Julius Nyerere then further downtown towards the bypass leading to Mbare. Mbare Musika itself also has a lot of these 'tuckshops'.

The air time and newspaper vendor at the traffic light still wants a dollar that they can hold and pocket. Most eateries for the lower end market will also continue to trade in cash for the their one or two dollar meals.

Filling up on fuel also remains another challenge as one needs to get cash to load up the service station linked cards or buy coupons. Service stations really need to get connected.

But there is no arguing about the fact that the era of the plastic money is upon us with the only question being which option to go for.

This article will look at some of the options on the market and look at the cons and pros. Although effort has been made to get comprehensive information and be objective on what is on offer, the article may be subjective based on what the writer has personally experienced versus word of mouth.

Generic bank cards

There is surprisingly a large number of generic bank cards on the market. These are only good for Automated Teller Machines or the Point of Sale machines in the shops.

Fortunately the Zimswitch interbank facility is wide spread which means that if one simply wants to buy a few provisions, then most probably they will be able to transact with all major retailers.

With most supermarkets stocking up on air time, you no longer need to scrabble for a dollar notes. Now even clothing retailers are installing Zimswitch facilities which widens the card's limited capacity somewhat.

Better bank cards

In addition to the basics, some banks have come up with cards that do a little bit more for you. These are linked to mobile money services and internet banking and you almost never have to touch a bank note.

With these cards you can settle utility bills, pay DStv accounts and get your air time.

With some of the cards you can also move your money from one interlinked account to another. With the aid of online Apps the range of transaction widens appreciably. One outstanding bank has created an online Application which is available to account holders and non-account holders alike. From this App, one can do everything including managing your investment portfolio and taking care of your insurance cover.

International prepaid cards

Visa and Mastercard are the most common on the market. Most quality restaurants, hotels and bars in Harare and other towns will happily accept these cards. They even work for purchases which are not done every day like generators.

No need to mention the added convenience of not having to carry cash if you must travel out of the country. Minor on-line purchases of virtual goods such as e-books on Amazon are also covered with no hassle.

A number of banks have made it easy for the general public to own these cards with some banks going the extra mile by linking the international card to the existing local account.

Mobile phone money services

For most people, mobile money services have just been about sending and receiving money. The moment that money hits their wallet, some people seek the nearest agent to get their cash out. This has becoming the banking service for people who were previously unbanked.

But with agents now also feeling the pinch of cash shortages, people will have to learn that you can simply move the money on, without converting it to hard cash. Many SME operators like hairdressers and vendors in places like Siyaso readily accept mobile money transfers.

Mobile money services offer numerous services like bill and school fees payments. Where they are still lacking is an easy payment facility in the supermarket. The Pay Merchant option is rather convoluted and not quite the thing to do at the head of a long queue at the month-end.

It also looks like the push for commuter omnibuses to collect their fares through this system hit a brickwall. Certainly the idea is worth revisiting.

Best option

To get the best out of plastic money one needs a combination of an international prepaid card, a local bank card with extra benefits and a mobile money wallet. Which is okay because even in the western world it is standard for one to own several cards to make life that little bit easier.

 

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