Free mobile transaction app for SA-based Zimbabweans

Business Editor
ZIMBABWEANS living in South Africa, both banked and unbanked, can now access free mobile transacting and basic insurance services through the launch of the AMA.ZING Diaspora solution.

The solution, developed by the Zing Group, enables clients living in South Africa to buy products and pay bills in Zimbabwe using AMA.ZING digital coins paid for in South African rands.

“We view this product as a game-changer that will not only help realise financial inclusion for emerging markets, but also disrupt the current status quo in the financial services and money remittance sector,” Mr Herbert Banhire, AMA.ZING head of Zimbabwean Diaspora South Africa said.

He revealed that in the formal sector alone, $785 million was remitted from South Africa to Zimbabwe between January and November 2017.

“The average monetary value of these transfers was around R1 200. And while there are many money transfer businesses available, the cost of using these services in South Africa is very expensive, with official average fees reported at 16.71 percent.

“The reality on the ground, however, is closer to between 20 percent and 40 percent of the total transfer of money being remitted across the border,” said Mr Banhire.

When looking at the sheer volume of money Zimbabweans are spending on sending money across the border, he said the extent to which they were being exploited was worrying hence they came up with the new solution. AMA.ZING has designed a mobile app, which users can download for free.

“They then purchase US$-linked AMA.ZING coins, either by cash or by bank account, and redeem these coins against purchases or bills, which need to be paid in Zimbabwe. All users qualify to receive free life cover rewards as well as cash-pack rewards,” said Mr Banhire.

The intervention is set to be the first for people living in South Africa to buy insurance in Zimbabwe from across the border – a unique value proposition, made all the stronger by Swiss Re’s support. Mr Banhire said Zing Coins can be purchased in app using a bank card, Snapscan app or Zapper app, or in cash from one of more than 100 000 till points around South Africa, found across a wide range of stores.

“Most convenient about the solution is that users only need to supply their name and mobile number in order to register on the app and do not need a bank account. “This is critical for the 3,5 million Zimbabweans living in South Africa – of which just 25 percent are banked formally,” said Mr Banhire.