TRYNESS TEMBO, Lusaka
VISA, a global payments technology company, is in discussions with Government to promote the digitisation of payment and a cashless economy.
Company general manager for southern Africa Jabu Basopo said currently, Zambia is struggling with huge cash in circulation because people prefer to move with money than use cards for their transactions.
In an interview recently, Mr Basopo said if the country digitalises payments, it will result in more money in the banking system to enable financial institutions to lend.
“We are in the process of discussions with Government through the accountant General’s office, because it is in charge of terms of digitising payments for the entire departments within Government.
“At micro level, there are also several benefits, because if the banking system has money it will help small and medium enterprises borrow to inject into their business and to enable them to create jobs as well as contribute to the growth of the economy,” he said.
Mr Basopo also said the company has conducted a study, which reveals that any growth in the electronic payments collates to increase in growth in gross domestic product.
He said the company is working with various banks in terms of promoting digital payments through the use of the card.
Mr Basopo said Zambia has made strides in developing digital financial services, but that there is still some work needed to be done to fully implement digital payments.
In a separate interview, Visa country manager Salome Makau said there are some remote areas in Zambia without banks forcing workers to take a two-day journey to collect salaries.
“If money was sent to them electronically it will lessen their burden,” Ms Makau said.