Reduction of charges on electronic transactions welcome

The reduction of charges on electronic transactions to the friendly and economic levels is a welcome development which demands the conformity of all stakeholders. This is a functional strategy of ensuring that the current cash crisis is conquered successfully.

The accomplishment of this new strategy of using plastic money demands the commitment of all citizens, Government and the corporate world. Plastic money is a term that is used predominantly in reference to the hard plastic cards we use every day in place of actual bank notes or coins. These come in many different forms, such as, cash cards, credit cards, debit cards, pre-paid cash cards and store cards.

Government should facilitate the immediate importation the Point of Sale (POS) to resource all institutions which require its customers to make payments to it. This should be inclusive of all organisations found in the economy, both, public and private. For instance, Schools, Police office, passport office, public transport, shops, universities, hospitals and clinics, traders, fuel service stations, and even vendors. Supposedly everyone embraces the use of plastic money in this way; certainly cash shortages will be mitigated. Members with no bank accounts would utilise mobile cash transfers using for example, Eco-cash debit card which has the same value and effect as the Master card from any other bank.

Use of plastic money will stimulate productivity as there will be no more delays attributable to cash shortages as all the transactions will be feasible through electronic transmission of money. There is certainty that the productive sector stands to benefit more than the current levels of revenue inflows where all transaction demand cash up-front.  

Customers in return would also enjoy maximum convenience. So this culture needs cultivation so that we perpetuate the continuity of our nation with minimum challenges. If this one is removed, then we can move forward to recover the ailing economy which equally demands our comprehensive effort. It is us would can build our nation, and there is no one from outside who has the prerogative responsibility to intervene in order to solve our domestic problems while bonafide citizens watch from the terraces.

Most people argue that there is loss of trust in our banking system. This surely is a lame excuse considering the present state of affairs in the digital era. There is need to restore the lost confidence by any means anyway. Let us all re-craft our own contemporary situation and chat the way forward together so that we believe in ourselves as citizens poised to develop our country.

This circulation of cash requires everyone to have a moment of thought, and apply personal contribution practically by complying to use of plastic money. If everyone reacts positively, that will be a giant step towards solution to our problems.

The banking sector should be lead in this new strategy by acquisition of POS machines and deploying them extensively in all institutions which handle money in order to promote electronic transfers. At the moment for instance, in many supermarkets, there are few banks that installed their machines for use by their clients. In most cases, clients are compelled to use machines for other bank through Zimswitch. Some clients may not want to lose even one cent this way. Therefore, to easy the problem, POS gadgets should be found everywhere.

To prop-up the system, the responsible authorities are encouraged to ensure that there is working network for all banks to avert the embarrassment of failing to transact due to absence of network coverage. To keep customers informed, banks should also give periodic electronic bank statements on their mobile phones. This promotes good corporate governance as bankers will be given the opportunity to account for their cash in a transparent manner.

Some banks like POSB and Agribank have customers who are facing challenges of interbank cash transfer should be naturally be motivated to upgrade their systems to create fluidity in their clients like what others are doing. It is imperative to create free flow of cash to enhance a break-through after such a protracted cash shortage which is threatening to injure the economy further.

In this vein, banks should activate everyone automatically for mobile banking with minimum hurdles. Banks are also urged to relax terms and conditions for someone to open a bank account in order to incorporate even clients from the informal sector.

To promote this new strategy effectively, the Reserve Bank of Zimbabwe should carryout massive public awareness canmpaigns to educate the generality of the populace to appreciate this new dispensation. Right now it's only a few people that have correct understanding of this scenario, yet this programme targets everyone as an indispensible participant.

It is worth mentioning that use of plastic money is not only peculiar to our own situation, but is the universal practice, particularly in the developed world. However, this change may face some hurdles as change is always liable to resistance. It becomes easy to execute when appropriate education is applied to inculcate the right values, perspectives and the ultimate approval of the system.

Today plastic money as mentioned earlier, is the best alternative of hard cash. It is safer to travel with a plastic money card than cash. If it is stolen one may contact his/her bank immediately to safe guard against possible theft.

New technologies have taken over the globe, and it dominates as it is used in almost all types of businesses, companies and industries. No industry on this planet can survive without technology these days. The reason is extremely clear; with growing modernization and businesses it is important to simplify everything by maintaining records, using various methods to track business, comparing oneself with competitors. Almost everything can be made possible with the use of technology.

Every aspect in life has its own pros and cons. Unlike the regular banking going to the branch holding your account and waiting in a long queue to withdraw or credit the money or cheque you have received, technology has helped us to use Automated Teller Machines (ATM), and debit cards to withdraw or wire transfer to transfer money into someone else's bank account, similarly the person who owes you money or who needs to give you money can transfer the same into your bank account.

It is prudent that we switch to credit or debit cards, and forget the cash money, and then we lead hustle free lifestyles. Time spend by bankers standing in cash queues at banks is detrimental to our Gross Domestic Product (GDP) as workers and business consume a lot of time at the bank.

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Sparkleford Masiyambiri <sparklefordmasiyambiri@gmail.com