Tatenda Macheka
The Reserve Bank of Zimbabwe (RBZ) has ruled that mobile money agencies are permitted to offer services to multiple payment system providers, in a landmark directive that effectively bars any of the mobile communication companies from making any exclusive agreements with agents.
Two of the country’s biggest mobile companies Econet and Telecel have reportedly been at each other’s throat over the sharing of mobile money agencies.
Telecel claimed that Econet was refusing them access to mobile money agencies registered with it for its EcoCash facility and launched an official complaint to the RBZ, which is the regulator for mobile money services.
On February 11, Telecel through its public relations advisors MHPR Public Relations Consultancy confirmed to The Zimbabwe Mail that it had sent correspondence to the RBZ sharing its concerns over its beef with Econet.
In a directive issued Friday, RBZ National Payment Systems senior executive Josphat Mutepfa said it had come to the central bank’s attention that some mobile payment system operators were entering into agreements with agents in terms of which the agent was precluded from acting for any other mobile payment system operator.
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Mutepfa said the mobile money agencies were free to conduct business with many system providers, as long as they had separate contracts for provision of such services with each institution and the agent had the capacity to manage the transactions for the different payment system providers.
He added that exclusivity agreements or covenants were likely to have an adverse effect on competition and may be detrimental to the smooth operation of payment systems in the country.
“Exclusivity agreements will consequently hamper the Reserve Bank’s efforts of promoting financial inclusion and the expansion of financial services in the economy.
“An agent may offer services to multiple payment system providers provided that the agent has separate contracts for the provision of such services with each institution and the agent has the capacity to manage the transactions for the different payment system providers,” said Mutepfa.
He said where an agent provided services for more than one payment system provider, such an agent may enter into a confidentiality agreement with each of the payment system providers for whom the agent will act.
“Any payment system provider seeking to contract an agent which has already been contracted by another payment system provider to carry out agency services shall assess the capacity of the agent to manage transactions for different payment system providers.
“Where a payment system provider required to enter into exclusive arrangements with an agent, the payment system provider should to apply to the central bank to justify why such an agreement was necessary.”
The RBZ said it reserved the right to approve or reject an application justifying exclusivity with agencies.
Econet Services CEO Darlington Mandivenga said the EcoCash agent contract was not exclusive.
He added: “This contract is available to the public, either from us or any of the thousands of EcoCash Agents that have signed up for the service. It has always been up to the agent to decide whether or not they wish to do business with other mobile financial services providers.”
The Reserve Bank of Zimbabwe (RBZ) has ruled that mobile money agencies are permitted to offer services to multiple payment system providers, in a landmark directive that effectively bars any of the mobile communication companies from making any exclusive agreements with agents.
Two of the country’s biggest mobile companies Econet and Telecel have reportedly been at each other’s throat over the sharing of mobile money agencies.
Telecel claimed that Econet was refusing them access to mobile money agencies registered with it for its EcoCash facility and launched an official complaint to the RBZ, which is the regulator for mobile money services.
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| Charity Dhliwayo- Acting RBZ Governor |
In a directive issued Friday, RBZ National Payment Systems senior executive Josphat Mutepfa said it had come to the central bank’s attention that some mobile payment system operators were entering into agreements with agents in terms of which the agent was precluded from acting for any other mobile payment system operator.
He added that exclusivity agreements or covenants were likely to have an adverse effect on competition and may be detrimental to the smooth operation of payment systems in the country.
“Exclusivity agreements will consequently hamper the Reserve Bank’s efforts of promoting financial inclusion and the expansion of financial services in the economy.
“An agent may offer services to multiple payment system providers provided that the agent has separate contracts for the provision of such services with each institution and the agent has the capacity to manage the transactions for the different payment system providers,” said Mutepfa.
He said where an agent provided services for more than one payment system provider, such an agent may enter into a confidentiality agreement with each of the payment system providers for whom the agent will act.
“Any payment system provider seeking to contract an agent which has already been contracted by another payment system provider to carry out agency services shall assess the capacity of the agent to manage transactions for different payment system providers.
“Where a payment system provider required to enter into exclusive arrangements with an agent, the payment system provider should to apply to the central bank to justify why such an agreement was necessary.”
The RBZ said it reserved the right to approve or reject an application justifying exclusivity with agencies.
Econet Services CEO Darlington Mandivenga said the EcoCash agent contract was not exclusive.
He added: “This contract is available to the public, either from us or any of the thousands of EcoCash Agents that have signed up for the service. It has always been up to the agent to decide whether or not they wish to do business with other mobile financial services providers.”
