The Reserve Bank Governor, Dr John Mushayavanhu as Zimbabwe seeks Indian payments technology to cut transfer costs /@ReserveBankZIM
- Zimbabwe is negotiating with NPCI International Payments to modernise its payments infrastructure.
- The proposed system would connect banks, mobile-money operators and fintech companies through shared technology.
- Central bank governor John Mushayavanhu says talks could conclude by 31 October.
- The potential agreement follows India’s earlier partnership to develop an instant-payment system in Namibia.
The discussions involve NPCI International Payments Limited, the overseas arm of the National Payments Corporation of India, which operates the country’s Unified Payments Interface, commonly known as UPI.
The proposed arrangement would use UPI technology as common infrastructure through which banks, mobile-money operators, fintech companies and other providers could process transactions in real time.
DON’T MISS THIS:See Zimbabwe’s gold-backed plan to fight against the US dollar
For businesses and consumers, the ambition is to make moving money between providers faster and less expensive. However, the amount customers could save has not been disclosed.
Central bank governor John Mushayavanhu said negotiations could conclude by 31 October, according to Bloomberg’s5 October report. That is a potential deadline for concluding talks, rather than a date for launching the service.
DON’T MISS THIS:India’s payments authority targets Africa for its digital payment expansion
Connecting providers matters as much as speed
UPI allows users in India to make instant bank-to-bank payments through participating applications, including by scanning a QR code or using a payment address. Its significance lies in enabling different providers to transact through shared infrastructure.
For Zimbabwe, that approach fits a reform programme already under way.
In a 2 March circular, the Reserve Bank of Zimbabwe instructed banks and payment providers to align their platforms, mobile applications and merchant services with its new QR-code standards.
The directive requires payment acceptance to work across banks, mobile-money operators and other providers, explicitly seeking to avoid isolated systems that cannot communicate with one another.
The Indian discussions could therefore complement Zimbabwe’s existing interoperability drive. The commercial question is whether better connections between providers can reduce the cost and inconvenience of everyday transfers and merchant payments.
DON’T MISS THIS:Zimbabwe launches new ZiG banknotes as central bank targets stability after years of currency turmoil
Technical compatibility alone will not determine the price customers pay. The eventual charging structure and the participation of banks and payment companies will also matter.
An African precedent in Namibia
NPCI International has already pursued a similar infrastructure partnership elsewhere in Southern Africa.
On 2 May 2024, it signed an agreement with the Bank of Namibia to support the development of a UPI-like instant-payment system. The arrangement targeted transfers between individuals and payments to merchants, with greater accessibility and interoperability among its objectives.
The Namibian agreement demonstrates that India’s overseas payments strategy includes helping countries develop domestic infrastructure. It extends beyond allowing Indian visitors to use familiar payment applications abroad.
Zimbabwe’s negotiations remain at an earlier stage. The available report does not disclose an implementation budget, launch timetable or customer fee schedule.
