… designates ZimSwitch a national payment switch
Zimbabwe’s central bank has announced the designation of payments technology company ZimSwitch (Pvt) Limited as a national payment switch in a move aimed to tightening regulation of mobile money players.
The country’s three telecommunications mobile operators are Econet Wireless, NetOne and Telecel, and they all operate mobile money platforms.
Statutory Instrument 80 of 2020 proclaimed it mandatory for every money transmission provider and mobile banking provider shall be connected to a national payment switch.
But at the time the SI was promulgated there was no national payment switch.
A (national) payment switch is a system that can interface with any POS system, Automated Teller Machine (ATM), Mobile Payment System and Internet based commerce portals, consolidate all electronic transactions and then intelligently channel them to one or more payment processors for authorization and settlement.
ZimSwitch is now that payment switch.
Said Reserve Bank of Zimbabwe governor Dr John Mangudya today:
“In accordance with the provisions of the National Payment Systems Act
[Chapter 24:23] and the Banking (Money Transmission, Mobile Banking and Mobile Money Interoperability) Regulations, Statutory Instrument 80 of 2020, the Reserve Bank of Zimbabwe wishes to advise the public that it has designated ZimSwitch as a national payment switch with immediate effect.
“All mobile money transmission providers and mobile banking providers are hereby directed to be connected to ZimSwitch as provided for by section 4 of the Regulations.
“To ensure seamless integration, all money transmission providers and mobile money providers must complete the necessary installation or deployment or commissioning of infrastructure and connection protocols, credentials and documentation for connection to Zimswitch by no later than 15 August 2020.”
The central bank has in recent weeks been embroiled in a court case with Econet Wireless’ mobile money platforms, Ecocash over inconsistencies in the use of the platform by its agents.
Zimbabwe’s apex bank won the court case against mobile services provider Econet Wireless’ EcoCash platform, which had sought relief after the regulator had frozen the company’s mobile agent lines.
The move to set up the national payment system will also ensure that mobile operators’ mobile money platforms are interoperable.
According to SI 80 of 2020, there will be minimum and maximum transaction limits determined by banks and mobile money service providers; while the national payment switch will have daily, weekly and monthly transaction limits; and local banks and mobile money operators will be able to suspend or ban users from transacting.
In a move key for tightening regulation of the sector, the central bank will have real-time read-only access to all transactions done via the national switch; and banks and mobile money providers will only be allowed to review charges with permission from the RBZ.