EcoCash, a mobile money service offered by South Africa-based mobile communications company Econet Wireless, and MasterCard Incorporated, a US-based payments and technology company, reportedly have reached an agreement to issue approximately 3 million MasterCard debit cards to EcoCash customers in Zimbabwe over the next five years. The EcoCash MasterCard debit cards will allow customers to withdraw cash from MasterCard-licensed automated teller machines (ATMs) and pay for goods and services from retailers that accept MasterCard.
According to a statement attributed to Douglas Mboweni, the CEO of Econet, “The adoption of electronic payments is critical to Zimbabwe’s economic development. Reducing dependency on cash while increasing financial inclusion benefits the whole country including the government, industry sectors like tourism and retail, merchants and citizens” [1].
As of February 2014, Econet Wireless Zimbabwe reports total assets of USD 1.2 billion, total liabilities of USD 570 million and 8.8 million subscribers [2]. As of June 2014, EcoCash had 4 million customers in Zimbabwe. As of December 2013, MasterCard reports total assets of USD 14.2 billion and 1.2 billion payment cards in circulation.
By Benjamin Krupp, Research Associate
About Econet Wireless Group
Based in South Africa, Econet Wireless is a telecommunications group with operations in Africa, Europe, South America and East Asia. It offers mobile and fixed telephone services, internet service and satellite services. The group’s subsidiaries include Econet Wireless International, Econet Wireless Africa, Econet Wireless Global and Liquid Telecom. Ecocash is Econet’s money transfer service that allows Econet customers to transfer money between mobile phones. As of June 2014, EcoCash had 4 million customers in Zimbabwe. Econet operates in Botswana, Burundi, China, Lesotho, Mauritius, Nigeria, South Africa, the United Kingdom, the United States and Zimbabwe.
About MasterCard
MasterCard Incorporated is a payments and technology company that is headquartered in the US state of New York. It connects consumers, financial institutions, merchants, governments and businesses in approximately 210 countries and territories. MasterCard’s products aim to facilitate commercial activities such as shopping, traveling, running a business and managing personal finances. As of December 2013, MasterCard reports total assets of USD 14.2 billion and 1.2 billion payment cards in circulation.
Sources and Additional Resources
[1] Biztech Africa: EcoCash Launches MasterCard Debit Card
[2] Econet Wireless Zimbabwe: Audited Financial Results for the Year Ended 28 February 2014
MicroCapital, July 6, 2014: Econet Wireless Accused of Monopolistic Practices Regarding Mobile Money Service
MicroCapital, June 23, 2014: Bank of Punjab, MasterCard Launch Electronic Government-To-Person Social Security Payment System in Pakistan
MicroCapital, April 24, 2014: Econet of Zimbabwe to Offer Microloans for Entrepreneurs in Informal Sector
MicroCapital Universe Profile: Econet Wireless Group
MicroCapital Universe Profile: MasterCard
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