Zimswitch rules digital payments roost . . .as company celebrates 30 years
ZIMSWITCH has registered exponential growth in transaction volumes over the years due to the increase in the adoption of digital payments in the country. Formed in 1994, the company now makes up more than 75% of all cardbased transactions in Zimbabwe.
This comes as Zimswitch celebrates its 30th anniversary through a refresh of its brand identity.
“As we celebrate the 30th anniversary milestone, we take this opportunity to express our gratitude to our invaluable stakeholders for their unwavering support over the years,” Zimswitch board chairperson Wonder Nyabereka said.
“We are committed to upholding Zimswitch's role as the national payment switch, remaining a steadfast and active participant in the economy. Our focus on modernization and the promotion of digital payments adoption in the country is unwavering, and the brand refresh serves as a testament to this renewed dedication.”
Zimswitch chief executive officer Zabron Chilakalaka said the new brand identity and the purpose, vision, mission and values reflect their continued commitment to innovation and progress as a pioneer in the payments technology industry.
“The evolution marks a fusion of our rich history with a forward-looking approach to meet the ever-evolving local and international financial ecosystem,” he noted.
The grand idea of establishing Zimswitch was pre-conceived through a vision of a progressive movement of eliminating unnecessary industry competition by fostering collaborations through payment infrastructure sharing in the financial ecosystem.
Founded on trust, Zimswitch was established through a nexus of minds between the partnering financial institutions Beverly Building Society (now merged into CBZ), Barclays Bank (now First Capital Bank), CABS, Founders Building Society (now ZB Bank), Stanbic and Zimbank (now ZB Bank).
In 1996, two members joined the partnership (Time Bank and Jewel Bank, now CBZ). What appeared impossible, which was the collaboration and working together of industry participants to solve the permeating challenge of scarcity of ATMs and Point of Sale infrastructure was achieved through this synergy with the first ATM and POS transactions processed in 1995 and 1996 respectively.
The company’s proficiency in providing robust and efficient payment infrastructure saw it being awarded the National Payment Switch role by the Reserve Bank of Zimbabwe in 2020.
“This mandate reinforced our call to pioneer digital payments transformation in Zimbabwe, ensuring ubiquitous products and service provision in the country,” Zimswitch head of Strategy, Business Development and Projects Michael Chauruka said.
“True to the call, we did not relent; in 2021 we introduced the contactless card supported by Near Field technology, a first of its kind in the region redefining the way customers make payments through the tap to pay for faster checkout.
“This was followed by the introduction of a 3D secure e-commerce platform in 2023. In addition, the switch enabled multi-currency and Zig processing.”
The digital payments innovation agenda did not end there, the gamechanging bulk payment EFT solution (ZEEPAY) was introduced in 2021 bringing efficiency, cost-effectiveness, and security. The solution has been widely adopted both by corporates and state
enterprises since its rollout.
Recently, Zimbabwe Manpower Development Fund (Zimdef) rolled out the solution to its partners, and according to the Zimdef chief executive officer Engineer Sebastian Marume: “Businesses need to be agile and digitise payment processes for effective reconciliation and ZEEPAY has been the best-in fit solution for Zimdef levy pay outs and improvement of the ease of doing business between Zimdef and its clients.
“Zimswitch’s primary objective is to solve the daily challenges consumers face when transacting as consumers are increasingly seeking a secure, instant, and seamless digital payment experience.
“The Zipit solution which was introduced in 2011 has become a household name in the payments industry allowing customers to transact instantly across banks and mobile wallets promoting financial inclusion and bringing millions of mobile money subscribers to the mainstream financial services.”
Over the years, the company has remained committed to developing market-relevant digital payment solutions that offer value to consumers and the wider ecosystem.
Its latest e-commerce innovation has enabled businesses, small and medium enterprises and large corporates to optimise consumer shopping experience through a simplified way of paying goods and services online using Zimswitch debit cards.
According to Paynow chief executive officer Vusi Ndebele, prior to the launch of Zimswitch Online, only a small proportion of the local banked population was able to complete e-commerce purchases directly from their bank account and even they had to endure a sub-optimal user experience.
“The shortcomings led consumers to transfer funds across alternative payment rails with considerable friction and cost. The new solution sustainably addresses the current challenges of coverage, cost and user experience,” he said.
“Paynow is proud to have partnered with Zimswitch to successfully enable the solution for over 15,000 Paynow ecommerce merchants without any intervention on the part of the merchant or the consumer. If you're a Paynow Merchant, you already are enabled for Zimswitch Online!"
In powering transactions through green energy, the company continues to embed sustainable and responsible practices across its business operations and communities to deliver fair outcomes to all its stakeholders.
“With a focus on environmental sustainability in 2019, a solar power station was commissioned to promote renewable energy use, and the company relies heavily on green energy to power all electronic transactions in the country with excess feed into the national grid. Our drive is to contribute to the global net zero emission target’,” Zimswitch head of technologies Itai Tsoro said.
In recent years, there has also been a significant increase in remittances through the diaspora corridor. This can be attributed to the growing demand for convenient and cost-effective remittance services.
Zimswitch, as a national payment switch, aims to provide cutting-edge technology for instant cross-border payments at a minimal cost, promoting inclusivity within the country.
As the market progresses, convenience becomes the goal, with an emphasis on frictionless transactions and instant payments. Zimswitch aims to deliver convenience to merchants and customers, both small and large, through supporting an array of payment options, including QR payments and moving beyond traditional card-based transactions to various credentials.
Looking ahead, Zimswitch is geared to deliver innovative solutions to meet evolving needs and demands in the market. To this end, the Company has set up a digital lab for the development of inhouse and co-created solutions with fintech.