Digital payment transactions are fast rising with records showing a continued growth in daily average volumes and value of transactions of the Malawi Interbank Transfers and Settlement System (Mitass), which is the country’s core payment system.
According to the Reserve Bank of Malawi (RBM) National Payments System (NPS) report for June, the daily average volume of Mitass transactions rose by 8.8 percent to 20 146 while the corresponding value registered a marginal increase of 2.2 percent to K63.9 billion.
The report shows that digital financial services (DFS) on the hand also showed an increased in daily average volumes which increased by 3.3 percent to 452 098 whereas the corresponding value recorded a marginal decline of 0.2 percent to K4.2 billion in May 2017.
Reads the report in part: “The increase in the daily average volume of DFS transactions was mainly on account of a 6.1 percent increase in non-bank led mobile payment schemes while Internet banking and bank led mobile payment transaction value contributed to the overall DFS decrease in transaction value as they contracted by 7.6 percent and 4.5 percent, respectively.”
Along with the move, the number of subscribers for mobile network operations-led mobile payments also registered an increase of 1.3 percent to 3.9 million in May 2017.
There was increase in the number of active users within the past 30 days which stood at 22.9 percent of the total subscriber base while those that were active within the past 90 days constituted 32.1 percent, according to the report.
On the other hand, there was also rebound in the number of subscribers for Internet banking services as they rose by 8.2 percent to 38 032 in May, having declined by 5.8 percent during the previous month.
Meanwhile, RBM and the National Taskforce on Electronic Payments (Ntep) have engaged on initiatives aimed at sensitising the public on the use of electronic payments which is in sync with the government’s efforts of digitising payments and achieving financial inclusion.
In an interview, RBM spokesperson Mbane Ngwira said RBM in collaboration with key stakeholders are working through Ntep to put in place measures designed to accelerate uptake of electronic payments in the country to lessen usage of hard cash.