In Cash-Strapped Zimbabwe, Mobile Payments Rule

Written by Dana Sanchez

Payments by check are disappearing and mobile-based transactions account for 89.1-percent of total transactions in cash-strapped Zimbabwe, ITWebAfrica reports.

Persistent liquidity problems are pushing citizens to use online payment, according to data from the central bank.

Although Internet penetration in Zimbabwe is less than 50 percent, the mobile penetration rate exceeds 100 percent, according to the report. Internet access in Zimbabwe is mostly through mobile devices.

According to the Reserve Bank of Zimbabwe, mobile-based transactions accounted for 89.1-percent of total transactions in volume. ATMs come in a distant second at 6.7-percent of transactions. Point of sale transactions account for 3.2 percent of the total, followed by real-time gross settlement at 0.9 percent; and checks at 0.1 percent.

Data for this report covered $1-billion worth of transactions for Jan. 1 to Jan. 9 in Zimbabwe, 2014, ITWebAfrica reports.

Sign up for the Moguldom newsletter — business news you need to know about economic empowerment for the digital age, delivered to your inbox.

About Dana Sanchez

Dana Sanchez was born in South Africa and is a U.S. citizen. After working in advertising, she went back to school and earned a master's degree in journalism from the University of South Florida. As a business writer, she won regional and national writing awards. As editor of a daily newspaper, she coordinated staff writers, freelancers and photographers in the fast-paced environment of daily news. Dana was an editor at Moguldom Media Group for four years, helping to build and manage a team of staff and freelance writers. She works now on for Nubail Ventures. A long-distance hiker and cyclist, she writes about the business of technology.