Telecash zero-rates mobile money transfers

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Posted by Read 21 Comments

new telecash tariffsIn a move that will definitely change the competition dynamics of local mobile money, telecash, the mobile money arm of Telecel has made it free to transfer money to a registered telecash subscriber.This automatically places telecash as the cheapest mobile money transfer option for the Zimbabwean market.

The new wave of “tariff treats” also comes with reduced tariffs for sending money to non-registered subscribers across all local networks and with the 5 cents charge placed by the regulator on all transactions being covered by telecash with that freebie. telecash will however maintain charges for cash-outs.

Through slightly cheaper services, new products like the telecash Gold Card and now free mobile money transfers, Telecel has been putting up a strong fight for the growth and success of their mobile money option. In its first six months telecash had grown to 600,000 subscribers.

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Telecel was the last operator to roll out its own mobile money service, which together with the need for success of add-on services in telecoms is what seems to be driving such ambitious market growth tactics.

While any reduced financial burden will undoubtedly be welcome by subscribers, this is a rather gutsy move from Telecel. This price reduction’s long term focus in terms of subscriber growth and loyalty, if not as successful as anticipated could have a negative impact on performance that now relies more on services like mobile money and less on voice revenue.

It will be worth the watch to see how the other mobile money services like market leader EcoCash which has 4 million subscribers, responds to this price reduction.

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21 Comments

  1. Anonymous says:

    Great move by telecel. That’s the way to go, its unfair to be charged for sending cash and also being charged for cashing out. It makes sense to charge for cash out only

  2. David says:

    Let the Mobile Money Transfer Wars start.
    In the Blue corner is EcoCash
    &
    in the Red corner is TeleCash
    Going head-to-head & toe-to-toe
    This battle can only but benefit us consumers!
    Bring it on!

  3. Brighton says:

    I dont see any war I hope people know the banking , financials and economics

    1. David says:

      Wait & C Brighton … 🙂

      1. Brighton says:

        Hahahah …… Wants to know who will start sending money more and send for no reason because sending is free

        1. Mhuka Huru says:

          The idea is who will start using Telecash (hence telecel) because of the zero tariff, not send money for no reason

          1. Mhof says:

            It will encourage those who are on Telecel but have not registered for Telecash, to register for Telecash. It’s really targeted towards Telecel subscribers.

          2. pride says:

            customers use an affordable platform not necessarily sending money for no apparent reason.the moment they would want to make a transaction,they will realize telecash is cheap.who doesn’t want to save a dollar.

          3. Brighton says:

            Telecel is running away and selling out to XXXX so now creating mess in the market no strategy – See more at: http://www.techzim.co.zw/2014/08/dear-telecash/#sthash.BeXKJCMt.dpuf

  4. collen says:

    is it free to transfer money from one acc to another in a bank

    or its risk business by telecash, Free play kkk lol

    soon they will make loses

    1. Anonymous says:

      Transfers within the same bank are free

    2. pafunge says:

      its normal for banks not to charge for transfers. its just that we are used to Zimbabwean banks sucking us dry. They should make their money in investments not in charging us to keep our monies. Kudos to Telecash , its about time things started geting SANE around here

  5. Optimus Prime says:

    Good move Telecel.
    Wondering though how they’ll pay agents, since bulk of fees charged by Ecocash gies to its agents. Or is it volumes within telecash are so low they can only make money on transactions going elsewhere?
    Still, a plus for customers.

    1. tele-ecocash says:

      Agents don’t benefit from transfers, but benefit by sharing tariffs with telecel on cash outs.

      1. Optimus Prime says:

        Which means they’re banking on high volumes? It’s not going to end well. I reckon the EcoCash way of commissions encourages more dealers to sign up as agents than the promise of volumes.

    2. Mhuka Huru says:

      Whats the benefit on agents from transfers?

      1. pride says:

        The benefits never had benefits on transfers between customers.

        1. pride says:

          the agents never had benefits on customer transfers.they are not losing commission,they are going to benefit from the high rate of customers transacting with telecash.

  6. Victory says:

    Hope this is not a promotion to take a swipe at their competition. great move

  7. Observer says:

    Good move by telecash. But i guess the monolith call Ecocash does not give a hoot

  8. CheckMate says:

    compare what was the Cashin charge before it was free….then what was Cashout then and what it is now, this will give one an idea how the math was done…it might not be really ‘free’ but transferred

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