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EcoCash to Increase Transaction Charges Next Month

Zimbabwe’s largest mobile money platform will review transaction charges in January.

EcoCash says it will adjust transaction charges by up to 20% starting next month. It cited the need to cover rising operating costs as the reason for this adjustment. The last time the transactions were reviewed was March this year. The latest review is set to be effective from January 2021.

Under EcoCash’s new tariffs, customers will pay an average of ZW$7.80 for amounts ranging between ZW$100 and ZW$149 when sending money to registered subscribers, paying for bills, or transferring into merchant accounts. The current average for amounts in that range (ZW$100 – ZW$149) is ZW$6.77.

Customers will pay, for transactions between ZW$1,000 and ZW$1,500, an average of ZW$50. Transactions of up to ZW$3,000 will attracted ZW$100 as a transaction charge, up from ZW$80.Customers will be charged an average of 1.87% per transaction of the ZW$5000 daily limit transaction.

This adjustment comes at a time of constant inflation in Zimbabwe over the last few months. The steady increase in price of goods and services are driven mostly by a 100% increase in the price of electricity, and a surge in diesel prices by 30%.

Natalie Payida Jabangwe, CEO of EcoCash

According to statistics from the Postal and Telecommunications Authority of Zimbabwe, EcoCash handles the bulk of all mobile money transactions in the country. The mobile money company invested millions of dollars in hardware and software infrastructure recently. It upgraded its platform to handle large volumes of transactions. It also made its platform more secure, robust, and scalable.

The new system, installed late last year, can complete an average of 450 transactions per second. This is up from an average of 200 transactions per second before the upgrade. Also, the number of failed transactions has been significantly reduced, and the upgrade has allowed the automation of several EcoCash’s services.

Zimbabwe in focus

Population: 14.6 million (2019)

GDP: $21.4 billion (2019)

GDP per capita: $1464 (2019)