Future of payments dominates Zimswitch anniversary

Zimbabwe’s future of payments took centre stage on Friday asZimbabwe’s future of payments took centre stage on Friday as Zimswitch, the nation’s electronic payments switch, celebrated its 30th anniversary in Harare., the nation’s electronic payments switch, celebrated its 30th anniversary in Harare.

The event highlighted the organisation’s pivotal role in driving digital transformation and financial inclusion.

Guest of honour, RBZ Deputy Governor Dr Innocent Matshe, said as the regulator, the Reserve Bank of Zimbabwe, looks to Zimswitch to continue leading the way in the digital payment space.

He said one area where the central bank expects Zimswitch to spearhead growth is the adoption of the QR code payment systems.

“QR codes present a versatile, efficient and inclusive solution that can revolutionise retail and informal sector payments,” Dr Matshe said.

“So I am glad that we can name this as a challenge to Zimswitch. Help us in this. And I know it is in your plans.”

Dr Matshe said Zimswitch had played a pivotal role in fostering interoperability.

“But what is important is that Zimswitch has ensured that customers and businesses alike can move funds effortlessly regardless of their banking or payment provider.

Dr Matshe said the designation of Zimswitch as a national switch underscored the confidence that the central bank and the broader financial community placed in Zimswitch’s infrastructure, “its security and its capacity to drive financial inclusion and innovation”.

Dr Matshe also said the future of money was digital.

“Therefore, it is important for Zimswitch going forward to strategise and think about what that means for the business of Zimswitch,” he said.

Zimswitch chairman Wonder Nyabereka said since 1994, ZimSwitch had transformed from a modest tenant switch into a national leader, consistently setting new standards in the tenant industry.

He spoke about the launch of Automated Transfer of Funds (ATF) switching in 1995, which he described as a breakthrough and “a pioneering move that revolutionised how payments were made in our country”.

Mr Nyabereka said the first point of sale transaction in 1995, was “deeply a foundation and groundwork for what was to come”.

He went on to say: “We have partnered with other international transaction and processing organisations such as Visa and Mastercard, and through these partnerships we have gained invaluable knowledge and insights that have informed and shaped some of our innovations and solutions, targeted at bringing convenience to the local market through enhanced systems.

“We also have our other banks who have continued to support this national cause by ensuring ease of transaction by all stakeholders, including interoperability with other non-bank financial service providers,” he said.

Mr Nyabereka revealed that there were “ongoing engagements to have all players becoming shareholders in the national switch”.

“We do anticipate, yes, that the engagement will lead to all players becoming shareholders in the national switch.

Mr Nyaberaka said the story of Zimswitch is not just one of technology and technological innovations.

“Over the past three decades, Zimswitch has shown its dedication to broader societal goals. We are deeply committed to our environmental, social and governance initiatives.

“Our projects promote sustainability and climate inclusion across the boundary, including the implementation of green energy solutions and efforts to foster a cashless society that empowers every citizen,” he said.

Also speaking during the same event, Zimswitch chief executive officer Zabron Chilakalaka said over the years, the institution had “rolled out an array of products across multiple channels in a quest to solve for what matters”.

He revealed that in the next few days Zimswitch shall be going live with functionality for interbank cash deposits over POS.

“We are currently testing a solution that allows cash deposits regardless of one’s bank.

“This is particularly useful as banks consolidate their branches,” said Mr Chilakalaka-herald