Local authorities embrace plastic money
MOST major cities have started installing point of sales (POS) machines at their revenue collection points while they have also heightened the use of money transfer platforms, becoming among the first Government related institutions to fully embrace plastic money in the wake of continued shortages of money.
Officials in Harare, Bulawayo, Gweru and Masvingo said they have already started installing and using POS at revenue halls while those in Kwekwe and Mutare said plans are in motion although they are accepting mobile money transfers.
In addition, some of the local authorities, have indicated that they are accepting different currencies such as the rand and the Euro when ratepayers are settling their dues, as a way of embracing all the currencies in the multi-currency basket.
However, the city officials also said although they have fully embraced plastic money, they have seen a slight drop in revenue as customers are still hesitant to use the facilities mainly because of high charges.
Bulawayo City Council senior public relations officer Mrs Nesisa Mpofu said the local authority was installing POS machines at Revenue Hall to allow ratepayers to pay bills using their bank debit cards. She said efforts were also underway to set up a bill payment system with commercial banks which will allow ratepayers to pay bills direct from their bank accounts.
“The installation of POS (Point of Sale) is expected anytime at the Revenue Hall as we are awaiting delivery of the machines. We are also working on ensuring that the district offices are also linked to POS so as to ensure installation to all Banking Halls.
“Once the system is up we will be flighting messages on our bills and other advertising platforms in order to advise our clients.
“We are currently working to have a bill payment system with other commercial banks as well to ensure convenience for our clients,” she said.
She said there were various other payment methods that residents can use for their convenience which include EcoCash and RTGS.
Harare City Council, which is owed in excess of $500 million in unpaid bills by residents and industry has installed 36 POS machines at revenue halls around the city. The local authority’s spokesperson, Mr Michael Chideme, said the council was working on introducing online banking which will allow property owners, particularly those in the diaspora to pay bills via internet.
He said the local authority hoped that the increased use of plastic money will also help in encouraging customers to clear their debts.
Gweru City Council acting Town Clerk Mr Edgar Mwedzi said the local authority had installed PoS machines at its banking halls in town and in residential areas. He however, could not say whether revenue inflows had increased as a result of introducing POS machines.
“We put in place swipe machines at our banking halls last week for our ratepayers convenience. The cash crisis had seen our revenue inflows declining and we had to act. We are however, yet to asses if the swipe machines have had any impact on our revenue inflows,” he said.
Masvingo City Council Town Clerk Mr Adolf Guzha confirmed that the local authority had installed POS terminals at its banking halls, saying the move had witnessed a relative improvement in revenue inflows.
Kwekwe City Council are still using mobile phone money transfer platforms for payment of bills by residents although Mayor Councillor Matenda Mdzoke acknowledged the needed to install POS terminals at its banking halls to deal with declining revenue inflows resulting from the liquidity crunch.
Mutare Mayor Councillor Tatenda Nhamarare said while the local authority was still using mobile phone money transfer platforms, plans were underway to install POS machines at revenue halls to increase ratepayers’ convenience.