Company general manager for southern Africa Jabu Basopo said currently, Zambia is struggling with huge cash in circulation because people prefer to move with money than use cards for their transactions.
In an interview recently, Mr Basopo said if the country digitalises payments, it will result in more money in the banking system to enable financial institutions to lend.
“We are in the process of discussions with Government through the accountant General’s office, because it is in charge of terms of digitising payments for the entire departments within Government.
“At micro level, there are also several benefits, because if the banking system has money it will help small and medium enterprises borrow to inject into their business and to enable them to create jobs as well as contribute to the growth of the economy,” he said.
Mr Basopo also said the company has conducted a study, which reveals that any growth in the electronic payments collates to increase in growth in gross domestic product.
He said the company is working with various banks in terms of promoting digital payments through the use of the card.
Mr Basopo said Zambia has made strides in developing digital financial services, but that there is still some work needed to be done to fully implement digital payments.
In a separate interview, Visa country manager Salome Makau said there are some remote areas in Zambia without banks forcing workers to take a two-day journey to collect salaries.
“If money was sent to them electronically it will lessen their burden,” Ms Makau said.
It makes sense.
Shooterz jt makes sense for VISA because they charge each time the card js used. The average Zambian will be disadvantaged because they will now have to maintain a bank balance which gets a bank fee ,the govt wants to look at a tax on the balance and then you pay a fee to visa each time u use.
The problem we have is dumb politicians who will give VISA free monopoly instead of encouraging the likes of MASTERCARD to join in.
Cashless economy is good for the govt as it reduces the black market hence increases tax revenue.
Spot on Masalamuso. where as it is a fact that there are huge sums of hard cash in circulation, it is also true that if the same cash is kept in banks rather than in people’s matresses and pillows, it is the banks and VISA that will benefit. they are here to cash in. lets not be fooled by those broad smiles.
Money is as DIRTY as a door to a public building that everyone has to touch to gain access, I wish my preferred place for an haircut would accept payment cashless.
The last thing a barber would want is cashless payments even here in the UK….as the taxman would know his income and not get tips!!
So HaJayHajay can think too?
@Masalamuso. I think charges are incurred in form of APR fees on a Credit Card and not a Debit Card. I have Visa of both. Thus, it would be a good move.
Cyrian chilufya you are correct with regard to debit card, was thinking of atm fees not card transactions per se thanks