THE country's second largest mobile phone operator, Telecel Zimbabwe launched its mobile money transfer service Telecash in a move that is set to raise the stakes against the hugely popular Ecocash run by its rival, Econet Wireless. 

The latest service on offer by Telecel adds on to the long list of competitive packages that mobile phone operators have been churning out since last year including cheaper calls, airtime promotions and reduced internet connectivity rates.

It is expected that mobile money services on offer translate into an improvement in service delivery to the mobile phone users, as they now have more options at their disposal.

The State-owned NetOne already has its own mobile money service dubbed One Wallet.

Unlike its rival EcoCash, Telecash is already on the Zimswitch system and will allow for banks to transact on its platform.

Econet has been unwilling to open up its Ecocash system to the Zimswitch platform - a move which it has defended on grounds that it was tapping into the country's unbanked population, which had been alienated by the formal banking sector.

This has put it at loggerheads with financial institutions who have claimed Econet was exercising a monopoly and have called on telecommunications authorities to craft legislation governing mobile money transfer services.

Telecel's ambitious plan is that by the end of the first six months it would register 1,6 million subscribers on Telecash. This will account for nearly 60 percent of its total subscriber base which stands at 2,5 million. The company said it was starting off with 1 600 agents spread out nationwide.

"We have focused on where people are. We have come up with a well developed and well enhanced mobile money platform," said Nkosinathi Ncube, the mobile financial services director for Telecel Zimbabwe.

"Telecash offers convenience for everyone but in particular offers banking services to people with no previous access to banking and financial services, especially those in the country's remote areas. They can receive, deposit and draw money without having to travel long distances to a bank. They can pay for goods and services without having to keep unnecessary amounts of cash on their persons."

The spending limit for Telecash transactions is $500 per transaction, $1 000 per day and $5 000 per month.

John Robertson, an independent economic commentator, said the entry of Telecash would be a game changer.

"Banking has taken a new complexion as more people will not be going the normal route of opening accounts," said Robertson.

"It will be important now for services to be linked to each other…and the pressure is now on banks to try harder to satisfy their clients."

It, however, remains unclear if Telecel's new mobile money transfer service would be subject to taxes from the ZANU-PF led government which is desperate to increase its revenue collection base.

The State at the beginning of the year imposed a $0,05 levy on every EcoCash transaction, which is estimated to handle monthly revenue of $200 million.

Robertson ruled out the possibility of Telecel being exempted from the tax that government is already charging Ecocash.

"The government will have to tax everyone on an equal basis, and Telecel can't rely on its government connections to escape the laws," he said.

Patrick Zhuwao, a nephew of President Robert Mugabe is seen to be the political hand within Telecel who helped last year to stave off pressure on the mobile giant to have its operating licence revoked on grounds that it had flouted the country's indigenisation laws.

This week, Econet said it has seen an increase in the use of its Ecocash service by employers from last month owing to the biting liquidity crunch in the country.

Darlington Mandivenga, the chief executive of Econet Services said, "Last month we saw an 82 percent increase in the number of companies using the EcoCash Payroll. People who are paid by EcoCash Payroll are guaranteed access to their money. If they then want to move some of it to a bank, it is up to them, but it is important that people know they can get their money. We guarantee that you will have access to your money."

Mandivenga also said that Econet allows its agents to access liquidity support through Steward Bank if they ever run out of cash.

"We are the only operator who has the capacity to pump cash into our agents to guarantee that money is available when you need it," he said. 

Tags: Econet, EcoCash, Telecash, Telecel,