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Digital financial transactions hit 32%

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By Taonga Sabola:

Digital financial transactions soared by 19.6 percentage points between January 2018 and November 2018, Reserve Bank of Malawi (RBM) Governor, Dalitso Kabambe, has said.

The development means Malawians are embracing digital payment solutions as opposed to traditional cash.

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Speaking when he launched RBM Strategic Plan recently, Kabambe said RBM managed to increase the penetration of digital financial services from 13 percent in January 2018 to 32 percent by end November 2018 against a December 2018 target of 25 percent.

Digital financial transaction is a seamless system involving one or more participants, where transactions are effected without the need for cash.

Digital transaction involves a constantly evolving way of doing things where financial technology companies collaborate with various sectors of the economy for the purpose of meeting the increasingly sophisticated demands of the growing tech-savvy users.

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Kabambe further said the volume of transactions increased by 32.6 percent, the value increased by 55.1 percent while the number of subscribers across retail payments increased by 33.8 percent.

“This has been achieved through increased awareness programmes the bank has been conducting in conjunction with various media houses,” Kabambe said.

The growth in digital transactions could also be attributed to the rise in both bank-led mobile payment systems and non-bank-led mobile systems.

Nonbank-led mobile phone payment systems include TNM Mpamba and Airtel Money.

Recently, Malawi has seen banks linking up bank accounts to mobile payment systems.

Consumers Association of Malawi Executive Director, John Kapito, recently said embracing mobile money could accelerate financial inclusion in the country.

Kapito said, with the supersonic speed at which Malawians are buying mobile phones, the country could ride on that to grow financial inclusion drive.

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