EcoCash: A Mobile Payment Service That's Transforming Lives In Zimbabwe

Circa 2008: In Zimbabwe, with hyperinflation touching 5 billion, mayhem broke loose. A bottle of Coke priced at ZIM $50 billion in the morning sold for over ZIM $150 billion in the evening – a hike of over 300 per cent.  By 2009, the situation worsened to such an extent that the Zimbabwean Dollar (ZIM) was not worth the paper it was printed on and was soon replaced by the US dollar. Although the currency shift managed to control inflation, it also led to various new challenges. The “Dollarization of the Economy” wiped off the savings of millions of Zimbabweans, even while they were lining up in front of banks. Consequently, banking institutions lost their standing and customers turned to informal payment channels. Moreover, with $1 being the minimum currency in use, Zimbabweans experienced an acute coin shortage leading to a “change problem.”

Fast-forward to 2015: the economy is rebounding, the change problem has been marginalized, and financial inclusion is finally a reality. This change has been brought about by EcoCash, Zimbabwe’s first and most prominent mobile service company. Launched in 2011 by EcoNet Wireless, Zimbabwe’s leading mobile operator, EcoCash has grown as a viable alternative to cash for millions of Zimbabweans looking to save, borrow, transfer and save money.

The company made its debut in this space with the launch of the P2P Transfer service in 2011, which provided an economical and quick alternative to informal means of payment. Moreover, they expanded the domestic remittance service across borders allowing Zimbabweans to send money directly to an EcoCash account. The company has collaborated with various money transfer bigwigs, such as Western Union, MoneyGram, WorldRemit and Chitoro for this. EcoCash also stepped into a bank’s shoes and launched the EcoCash $ave and the EcoCash Credit services. These are products related to simplifying savings and loans and are aimed at bringing micro-savings into the formal financial system.

To realize its vision of a truly cashless society, EcoCash launched the Merchant Payment system solution, aimed at cracking the retail payment business. EcoCash has collaborated with MasterCard to issue a debit card linked to an EcoCash account. The card can be used at any MasterCard licensed POS to make merchant payments or at the ATM to withdraw cash.  EcoCash consumers also have NFC cards and stickers which they can tap at an NFC POS to make payments, something which is available in developed markets only. Another interesting initiative is the EcoCash Savings Club in Zimbabwe. This service benefits multiple segments like self employed individuals, women groups and small entrepreneurs.

Today, EcoCash is used by 5 million Zimbabweans, accelerating the use of electronic payments in the country and making the economy cash-light. EcoCash is powered by Mahindra Comviva’s widely deployed mobile money platform mobiquity® Money. The platform has been deployed by 67 mobile operators and banks in over 45 countries. It is transforming the way people save, borrow, transfer and pay.