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Happiness Zengeni Business Editor
ECONET Wireless Zimbabwe has said it is willing to deal with individual financial institutions only with regards to the opening up of the USSD gateway. Econet was under pressure to revise its position regarding the opening up of the USSD gateway amid indications that banks are planning not to transact with its banking unit, Steward Bank, on the RTGS platform.
Well-placed sources said banks had through their industry body tried to negotiate access to the USSD mobile banking platform but Econet effectively side-stepped this as revealed by detailed communications in our possession.
The telecoms operator, in a letter dated January 20, 2013, said banks should approach the group directly if they have any concerns with regards to their agreement to open up the gateway.
Econet agreed to open up the USSD gateway to banks using an agreement crafted under Bank Electronic Airtime Retail (BEAR). The agreement laid out transaction charges and settlement conditions among other matters.
Bankers expressed concern over the structure, which they said was heavily skewed in favour of Econet.
“In general, the proposed agreement gives overwhelming powers to Econet to control the product form as well as the leverage to terminate the relationship at their convenience,” said a source in the banking sector.
Under the agreement, Econet can suspend or terminate services. It also accords the firm power to change tariffs at short notice, which would make future pricing structures of mobile banking products indeterminable.
Econet wants to charge banks 30 US cents per transaction and had suggested daily settlements of amounts due.
Econet also gave itself the right to approve advertising collateral to be used in communicating with subscribers. The company wants to define or prescribe each bank’s definition and packaging of mobile banking and content distribution services with regards to short codes.
The agreement is for a year.
However, some bankers have said that the duration of a year is too short for a channel of its nature and are suggesting a longer minimum period.
Sources said Econet was questioned why it would bring in an agreement they had initially crafted in 2012 which was meant to push airtime sales through banks.
In the letter, Econet said: “Our considered view is that since 2012 when we initially started signing these agreements, we discussed and agreed to the terms with individual banks. If any bank has particular concerns regarding those terms then we would suggest they approach us directly on an individual basis.”
While Econet is entangled in a bruising feud with the banks, Telecel has moved in to launch its mobile money service, which is open to all the banks using the ZimSwitch platform.
Telecel is second to Econet in terms of subscribers at 2,5 million against the latter’s 8,5 million.
Speaking at the launch of Telecash yesterday, Telecel mobile financial services manager Mr Nkosinathi Ncube said the involvement of banks would enable them to offer customers an affordable and easy-to-use mobile banking facility that could change the face of banking in Zimbabwe.
Mr Ncube said both the Reserve Bank of Zimbabwe and the Posts and Telecommunications Regulatory Authority (Potraz) had called for the interoperability of mobile financial services with banks.
Telecash is the first mobile financial service to achieve this.
“Telecash is the first to connect with Zimswitch and thus with all banks on the platform,” Mr Ncube said.
Telecel Zimbabwe chief commercial officer Mr Ashraf El Guindy said theirs was a strong product.
He said the company had partnered with some of the best players in the industry to come up with Telecash.
“We have associated ourselves with the best in the industry,” he said, adding that their technical partner in the arrangement was Obopay.
Its banking partners include Afrasia, CBZ and ZimSwitch, which provides links with most of the country’s banking institutions.
Online Reporter