RBZ In Advanced Talks To Introduce New Digital Payment System To Cut Transaction Costs
Zimbabwe could soon introduce a unified digital payment system that allows customers to pay businesses and transfer money between banks and mobile money platforms in real time, following advanced discussions between the Reserve Bank of Zimbabwe (RBZ) and an Indian payments technology company.
RBZ Governor Dr John Mushayavanhu said negotiations with NPC International Payments Limited (NIPL), the international arm of India’s National Payments Corporation, are expected to be concluded by October 31, although an agreement has not yet been reached.
The proposed system would use India’s Unified Payments Interface (UPI) technology to establish a common digital payments infrastructure for Zimbabwe, with affordability, interoperability and faster transactions among its key objectives.
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How The Single QR Code Payment System Would Work
According to The Herald, under the proposed arrangement, customers would be able to scan a single QR code at participating shops and pay using a supported bank account or mobile money wallet, regardless of which participating provider they use.
The system would also enable consumers to transfer money between participating financial institutions without navigating separate payment channels for different banks and mobile money operators.
Businesses, particularly small traders, could benefit from displaying one QR code to accept payments from customers using different participating financial service providers.
The proposed platform could also allow users to access multiple accounts and wallets through a single application. Depending on the final technical design, customers could use a common payment address, such as a mobile number, email address or digital payment identification number, instead of entering different account details for each transaction.
RBZ Targets Lower Transaction Costs
Reducing the cost of electronic payments is one of the central objectives of the planned infrastructure.
Mushayavanhu said the existing payments environment remains fragmented despite advances in technology, resulting in transactions that can be slow and expensive.
“Despite technological advances, payments remain slow, fragmented and costly,” he said.
The proposed infrastructure would establish shared payment channels connecting banks, mobile money operators, fintech companies, payment service providers and other regulated participants.
By reducing the need for separate connections between individual providers, duplicated infrastructure and certain intermediary services, the system is expected to create opportunities for cheaper digital transactions.
However, the RBZ governor cautioned against assuming that customers would immediately see specific reductions in bank charges.
“It would be premature to guarantee a particular reduction in customer charges before the system rollout.”
He said improving the affordability of digital payments remained one of the initiative’s principal objectives.
Existing Payment Systems Will Remain In Place
The proposed national platform is intended to complement Zimbabwe’s existing payment infrastructure rather than replace the systems currently used by banks and mobile money operators.
Mushayavanhu said the infrastructure would provide common channels through which participating institutions could connect and process transactions in real time.
“The intended outcome is a Zimbabwean national payments ecosystem that would be deployed and operated as a domestic instant payments public infrastructure, much like roads, dams and power grids,” he said.
The RBZ also intends to build on its existing QR-code interoperability framework instead of introducing a competing standard.
While the current framework sets standards for QR-code payments, the planned infrastructure would provide the underlying connectivity and transaction routing required to link participating providers.
Merchants would be able to accept payments through a single compliant QR code once the technical design, integration and certification requirements have been completed.
Opportunities For Small Businesses And Fintech Companies
The proposed system could make electronic payments more accessible to small businesses by reducing their reliance on dedicated point-of-sale machines and multiple payment arrangements.
QR-code transactions would allow money to move directly between accounts, with physical and virtual cards remaining alternative payment options rather than compulsory requirements.
The shared infrastructure could also create opportunities for local financial technology companies to develop new products and services that connect to the national payments network.
For consumers and businesses that are currently underserved by formal financial services, lower costs and simpler payment arrangements could help widen access to digital transactions.
October 31 Deadline Set For Talks
The RBZ is targeting October 31 to conclude negotiations with NIPL, although the proposed arrangement remains subject to a final agreement.
The timeline for implementation, including the integration of participating banks, mobile money operators and other payment providers, has not been specified in the information provided.
India’s UPI provides the model for the proposed system. It allows customers to make payments through different compatible applications and transfer money between participating banks without requiring the sender and recipient to use the same bank or payment application.
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