Cama faults Airtel Money over failed transactions

Consumers Association of Malawi (Cama) has faulted Airtel Money for allegedly taking time to reverse failed transactions on its Airtel Money platform.

Cama executive director John Kapito said in an interview on Friday that the delay by Airtel Money to reverse transactionS has ended up inconveniencing consumers.

He said: “The benefits of cashless transactions are many, but more importantly they help to authenticate and formalise transactions that are done.

“Cashless transactions also offer maximum security for consumers and service providers, they curb corruption and also reduce the printing and transportation of banknotes to various parts of the country which increases economic growth.”

Kapito said it is surprising that Airtel Money continuously inconveniences consumers with high service charges and holding consumers’ money hostage for more than 24 hours at a cost with no economic justification.

“This is negatively impacting the adaptation and adoption of the digital financial transactions,” he said.

Kapito said such setbacks threaten the adoption of new financial digital platforms, calling on authorities to help check the situation.

But in a written response, Airtel Money acting head Khumbo Phiri said while refunds for failed transactions may, at times, happen automatically, Airtel Money has a 48-hour window allowing for the third party partners and Airtel to validate the concerned transaction before a refund is made.

He said: “Airtel Money refund process for failed transactions to third party partners such as banks, utility providers and other merchants happens either automatically instantaneously or manually, at most 48 hours unless there is an exceptional issue.

“The Airtel Money refund process is done to mitigate any theft or fraud and mirrors our continued efforts to keep our platform secure, accessible and convenient for all.”

Reserve Bank of Malawi figures show that as at June 2021, mobile money subscriber 90-day activity rate dropped to 56.1 percent from 73.3 percent in March 2021 due to reduced activity from subscribers who were only active on mobile money usage due to some specific programme or activity. This level is the lowest since the first quarter of 2020 when the activity rate stood at 52.4 percent.