Econet has scraped charges for Merchant Payments done via Ecocash. It is like the magic move we have been waiting for, in order to really embrace mobile money payments.

As  TechZim reports, this is a “thank you” move by Econet. Ecocash already has a large network of merchants, way larger than the network of POS terminals. With merchant payments free, it positions itself as the go to payment platform. This should be a response to the order by the government for cashless payments tariffs to be cut.

The move has made all payments made via the USSD channel free of Ecocash charges. This also includes the EcoCash app, since it just wraps up the USSD. Only the Mastercard is left out, and will still attract the usual charges. Do note withdrawal and transfer charges are untouched.

It is not all flowers though, as this does not make it completely free. The government levies 5c on every transaction.  Your move, we are in this together. This is a small charge of course, as paying for $9.76 worth of goods will cost 5c, yet withdrawal would cost 30c. And you don’t get to lose 3c worth of change.

At this point, we are experiencing cash shortages. This is driven by the use of cash, when the sources of the USD have moved on. I am all for Plastic Money, but exorbitant charges were a stumbling block. With EcoCash payments now free, there is no reason to queue to withdraw the money, or cash out, if you may. In effect, it is more expensive to first withdraw the money then pay with cash, unless you are buying a loaf of bread maybe.

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