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Plastic Money Usage Gains Traction Amid Cash Shortages

The shortage of cash in Zimbabwe’s banks has resulted in an upsurge of the use of so-called plastic money and electronic transfers.

This according to finance minister, Patrick Chinamasa who was quoted by the state-controlled Herald newspaper.

Chinamasa said government is in the process of installing and activating point of sale machines in all government institutions.

Zimbabwe is currently facing serious shortage of the United States dollar which was adopted as one of the main currencies.

The central bank recently reduced charges for all electronic transactions to ease pressure on banking clients and promote the use of electronic banking services.

Businesses and individuals have been reluctant to use plastic money but, according to economic commentator, Bulisani Ncube in an interview with Studio 7, people have no choice but to use the plastic money due and they are now realizing the benefits compared to the use of cash.

Said Ncube: “My take is that yes, the uptake is up not because of anything but because people have no choice. They were put in a situation whereby you either use plastic money or you are forced to go to the bank for many days taking your money in bits and pieces.”

He said now people have accepted the use of plastic money as they are also enjoying the benefits.

He said businesses also have no choice but to have the point of sale machines or else they will not be able to have good business.

Onterview With Bulisani Ncube
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