Saturday, July 21Always On-point

Are Telecash And OneMoney Users Better Off Using Their Platforms Than Joining Ecocash?

As you are undoubtedly aware Ecocash has opened up its platform that enables Netone and Telecel users to register for the Ecocash services in a move that aims to enhance the fluidity
of the mobile banking sector.

These moves by Ecocash may have risen as a response to an ultimatum issued by The Minister of ICT and Cyber Security, Supa Mandiwanzira early this year.The scheme does not really
hit the target with regard to the ultimatum as it falls short of integrating the USSD platforms to facilitate wallet to wallet funds transfers. This is essentially Ecocash advancing their goals.

Customers from Netone and Telece may be wondering how much this platform charges them compared to what they were being charged at their respective MNO’s mobile money platforms.

Ecocash is charging the same service fees to the new users from other networks as it charges its own users. In other words, its fees are the same for everyone regardless of a user’s
network.

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That said, let us now take a look at the service fees charged to Netone and Telecel users of OneMoney and Telecash respectively relative to what they will be charged when they join
the Ecocash platform if indeed they cross over:

Show entriesSearch:
Service Ecocash One Money Telecash
Sending Money
($1.01) $0.11 $0.06 $0.11
Sending Money
($10.01) $0.37 $0.20 $0.30
Wallet to Bank
($1.01) $0.43 $0.07 $0.40
Biller
($5.01) $0.25 $0.15 $0.20
Merchant
($50.01) $1.25 $1.05 $0.85Showing 1 to 5 of 5 entriesPreviousNext
Regardless of the differences in fees charged for transacting on all platforms, customers seem to prefer accessibility over cost. Evidence of that is the fact Ecocash with its network of
distributed agents has 98% of the mobile money sector although it has the higher service fees compared to all the rest. This is before Ecocash allowed registration to its service by non
Econet subscribers.

Ecocash is the most preferred platform for mobile transactions compared to Telecelecash and OneMoney probably because they invested in rolling out a strong network of agents and
merchants making their service almost ubiquitous.

An example of this is that it has more links to banks for the ‘bank to wallet’ service than the number 2 mobile money service hence its more accessible even in these cashless
circumstances. As of now Ecocash is linked to 10 banks, OneMoney to 4 banks and Telecash to 13 banks. Telecash is stronger in this area and may need to utilise this advantage
together with their low transaction cost regime.

This is not easy for Telecash to do anymore, at least not for the mass market. Mobile money in Zimbabwe is so far a winner takes all and with Ecocash essentially becoming a bank
through their mobile app, Telecel could better focus attention elsewhere.–techzim

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