Zimpost’s money transfer services, Zipcash, which was launched in October last year, will be setting up operations in West Africa with arrangements in Nigeria being finalised. This was mentioned by Zimpost managing director Douglas Zimbango, according to an article in the Herald.
This regional expansion of the postal money transfer service started off with countries in SADC and according to Zimbango the service has handled $30 million in transactions since its inception. Zimbango also mentioned their plans to venture into Europe.
This beyond borders expansion plan is similar, in strategy at least, to Ecocash and Telecash. These mobile money services have been keen on exploiting the huge market in cross border mobile money services. Zipcash however seems to have an eye on Nigeria’s looming presence as an African economic hub.
Ecocash which has established the largest mobile money service locally set up a mobile money and remittance service last year in South Africa before announcing a similar service in the United Kingdom. Telecash seems keen on harvesting opportunities from the Zim/South African cross border money flows judging from statements made by Telecel director of financial services Nkosinathi Ncube. His remarks were made last week at the Mobile Money and Digital Payments Africa conference in South Africa.
Zipcash which rides on the platform developed by the Universal Postal Union (UPU) has managed to offer the distinct advantage of sending money outside Zimbabwe, a service which has not been available with other money remittance services.
The process of setting up a money remittances service in foreign territory does not seem to be an easy one judging from how cautiously (and slowly) these attempts have been made by Zimbabwean entities. Perhaps Zipcash, by virtue of its ties with UPU and as a postal-centric service might be able to expand its reach faster than the other money transfer services with the same intent.