Debra Matabvu
Herald Reporter
THE Reserve Bank of Zimbabwe (RBZ) is in advanced talks to adopt India’s Unified Payments Interface (UPI) as the backbone of a new national digital payments system, a move that would allow Zimbabweans to pay any merchant with a single QR code and move money instantly and at lower cost between banks and mobile money platforms.
The discussions with NPC International Payments Limited (NIPL) — the international arm of India’s National Payments Corporation — involve deploying UPI technology as the foundation of Zimbabwe’s National Payments Digital Public Infrastructure.
In an interview, RBZ Governor Dr John Mushayavanhu said although no agreement had been reached, October 31 has been set as the deadline for concluding a deal.
“Despite technological advances, payments remain slow, fragmented and costly,” he said.
“The proposed platform will complement, not replace, the country’s existing payment infrastructure. It will provide common payment rails through which banks, mobile money operators, payment service providers, fintechs and other regulated participants can connect and transact in real-time. Thus, improving the affordability of digital payments is one of the principal objectives of the initiative.”
Under the proposed system, a customer shopping at a participating business could scan one QR code to pay using a supported bank account or mobile-money wallet, regardless of which participating provider they use.
Similarly, consumers could eventually transfer money between participating financial institutions without having to navigate separate payment channels for different banks and mobile money platforms.
The initiative is also expected to simplify digital payments for businesses, particularly small traders, who could display a single QR code to receive payments from customers using different participating providers, instead of relying on multiple payment channels.
Dr Mushayavanhu said the proposed infrastructure would provide common, real-time and low-cost payment channels through which regulated financial service providers could connect.
“The intended outcome is a Zimbabwean national payments ecosystem that would be deployed and operated as a domestic instant payments public infrastructure, much like roads, dams and power grids,” he said.
The system is expected to complement, rather than replace, existing payment infrastructure, providing a common platform through which participating institutions could process transactions in real-time.
One of its key objectives is to reduce the cost of digital transactions by eliminating duplicated infrastructure, separate connections between individual providers and some intermediary costs associated with moving money across different systems.
Dr Mushayavanhu said: “Improving the affordability of digital payments is one of the principal objectives of the initiative.”
However, he cautioned that the actual reduction in bank charges and other transaction fees could not yet be quantified.
“It would be premature to guarantee a particular reduction in customer charges before the system rollout.”
For consumers, the proposed system could also reduce the complexity of making payments by allowing them to use a single application to access different participating accounts and wallets, with the system automatically directing transactions through the appropriate channels.
Instead of having to remember different account numbers and payment details, users could potentially be identified through a single payment address, such as a mobile number, email address or digital payment identification number.
The proposed infrastructure could also make it easier for smaller businesses to accept electronic payments by reducing their dependence on dedicated point-of-sale machines and multiple payment arrangements.
Under the envisaged model, QR-code payments would enable transactions directly between accounts, with physical or virtual cards remaining an alternative payment channel rather than a compulsory requirement.
The development could widen access to digital financial services by making electronic payments more affordable and accessible to people and businesses currently underserved by formal financial services.
It is also expected to create opportunities for local financial technology companies to develop new products and services using the shared infrastructure.
Dr Mushayavanhu said the proposed platform was intended to support the RBZ’s existing QR-code interoperability framework, rather than replace it or introduce a competing standard.
The existing framework establishes standards for QR-code payments, while the proposed national payment infrastructure would provide the underlying connectivity and routing needed to process transactions across participating institutions.
Subject to the final technical design, integration and certification of participating providers, merchants should be able to display a single compliant QR code that accepts payments initiated through different participating banks, mobile-money operators and other payment providers.
Overall, India’s UPI enables customers to transfer money between participating banks and make payments through different applications using a common payment network.
A customer can, for instance, pay a shopkeeper by scanning a single QR code using a compatible banking or payment application, even if the customer and merchant use different banks.
The system routes the transaction between the relevant financial institutions in real time, allowing money to move electronically without requiring both parties to use the same bank or payment application.
