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Econet drives EcoCashTA! into informal sector

By , Journalist
Africa , 23 Feb 2016

Econet drives EcoCashTA! into informal sector

Econet wireless' contactless micro-payment platform, EcoCash TA! Is helping to drive the value of the company's mobile money platform into Zimbabwe's growing informal sector, valued at an estimated US$2-billion according to Econet Wireless Chief Executive Officer, Douglas Mboweni.

The contactless payment platform facilitates free transactions for values below US$1, and charges 1% for transactions above this price mark.

This pricing structure is also helping to eradicate the need for smaller denominated coins, which are in short supply in the Southern African country - so much so, that retailers are offering sweets and similar priced goods in lieu of small change.

"In moving to the next level of the financial inclusion lifecycle, disruptive innovation is necessary to ensure that day-to-day micro transactions are formalised. EcoCash TA! tap and pay service, comes in as the catalyst to formalising (the) small-to-medium enterprise sector estimated at $2bn in value, which is largely informal, to-date," said Mboweni.

The company is showcasing the contactless payment platform, supported by Singapore-based Nearex, at the Mobile World Congress (MWC) currently taking place in Barcelona.

According to Econet EcoCash TA! has surpassed 5 million registered users.

Mayank Sharma, Chief Executive Officer at Nearex, said "mobile wallets are rapidly chasing the mighty mobile phones that have reached nearly everyone on the planet."

"Nearex has developed XIP, a mobile micropayment solution, from the ground up to compete with the convenience, affordability and acceptability of cash," said Sharma.

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