PAYMENTS CONFERENCE VICTORIA FALLS 2018 - Sustaining Digital Payments - Zimswitch
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PAYMENTS CONFERENCE VICTORIA FALLS – 2018 Sustaining Digital Payments
1994-2018 Zimswitch. Switching you on to financial flexibility
Our Role
What we do…
Electronic transaction switching
Clearing and settlement
Risk management on behalf of participants
1994-2018 Zimswitch. Switching you on to financial flexibility
Our Mandate
• We derives our mandate from the RBZ who formally
recognize the switch as a payment system.
• Our operations fall under the supervision and oversight
of the RBZ National Payment Systems Division.
• We are regulated in terms of the National Payment
Systems Act and Regulations as issued by the RBZ from
time to time.
• Zimswitch is also guided by international best practice
and standards to which it fully subscribes, including the
Bank for International Settlements (BIS) Principles for
Financial Market Infrastructures (PFMIs) and PCI DSS.
1994-2018 Zimswitch. Switching you on to financial flexibility
Our Place in Zimbabwe’s Financial Services Sector
Players in the Financial Services Sector– Adapted from NFIS (2016-2020)
1994-2018 Zimswitch. Switching you on to financial flexibility
Our Membership
17 Financial Institutions
4 Depositing Taking Microfinance Institutions
3 Sponsored Payment Service Providers
1994-2018 Zimswitch. Switching you on to financial flexibility
A Platform for Convergence
Zimswith has successfully brought convergence of
participants’ payment systems through interoperability
1994-2018 Zimswitch. Switching you on to financial flexibility
Our Interoperability Success Story
Sponsored
Member Payment Service
Depositing Providers
Taking
Microfinance
Institutions
=
Member
Financial
Institutions
1994-2018 Zimswitch. Switching you on to financial flexibility
Key Benefits of Interoperability
• Expands access to and utilisation of
Unlocks Shared Access electronic payments.
• Eliminates unnecessary competition
in infrastructure provisioning.
• Supports the supply side of
infrastructure through shared access.
• As Zimswitch we have successfully
established interoperability rails for
Zimbabwe bringing massive
economies of scale to players in the
financial services sector.
1994-2018 Zimswitch. Switching you on to financial flexibility
What has been Zimswitch’s contribution to the
digital payments dispensation in Zimbabwe?
1994-2018 Zimswitch. Switching you on to financial flexibilityResiliently Supporting Digital Payments
With the sustained growth in
electronic payments,
Zimswitch is at the centre of
mass with robust technology
to support the cash-lite
dispensation.
Our platform has adequate
headroom to sustain ‘extra-
ordinary’ volume peaks.
1994-2018 Zimswitch. Switching you on to financial flexibilityStatistical Overview
ATMs
(market total approx. 550)
60,000 active POS Terminals
(market total approx. 60,000) Zimswith connects 17
Financial Institutions,
4 deposit taking
Microfinance institutions & 3
PSPs
2 million active debit cards
(4,3 million cards in the 165,1 million
market) transactions in 2017
(34,9 million in 2016
up 372%)
Switched transactions
worth $6,6 billion
1994-2018 Zimswitch. Switching you on to financial flexibilityNational Contribution – Stats for 2017
75% of all POS transactions done in 2017 were
switched through Zimswitch. Thus 160,4m out of the
national total of 214,9m.
In terms of value, POS transactions switched through
Zimswitch in 2017 account for 77% ($5,1bn) of the
national total value of $6,6bn.
ZIPIT transfers account for $1,6bn of the national
electronic fund transfers done in 2017.
1994-2018 Zimswitch. Switching you on to financial flexibilityNational SuperBrand
ZIPIT
• First runner up – Money
Transfer (2017)
• Number 11 national
Business to Business
Brands (2017)
1994-2018 Zimswitch. Switching you on to financial flexibilityMarket Overview
16,2 million Est. 4,3m debit
population cards in issue;
Approx. 4 Est 17,411 credit
million formally cards
banked Est 63,987 prepaid
population cards
Number of Mobile payment
women with subscribers 4,6
bank accounts - million
935,994 Total POS devices
GDP $14,4 in the market
billion approx. 60,000
GDP per capita Total ATMs in the
approx. $1,000 market 550
1994-2018 Zimswitch. Switching you on to financial flexibilityMarket Pain Points
Cyber Fraud & Security Financial Inclusion
Magnetic stripe cards open to fraud & Significant percentage of the
counterfeit manipulation population is financially excluded
Financial losses to banks and Cost of digital transactions perceived
customers to be high
Slow rate of payments modernization Market Fragmentation
Slow uptake of modern digital platforms Resistance to interoperability resulting
by banks and customers in payment system silos
Small value transactions remain largely Bilateral arrangements
cash based
1994-2018 Zimswitch. Switching you on to financial flexibilityWhat role has Zimswitch played in the
modernization of payments in Zimbabwe?
1994-2018 Zimswitch. Switching you on to financial flexibilityPayments Modernization
1. ZIPIT
Transaction type 27 Credit Push
HEADER
9000- Person to Person
9001- Person to Business Paragraph
9002- Business to Person
9003- Business to Business
Version 2.0 - KYC details required to meet AML requirements
2. Payment from Account - Transaction 50
3. EFT (Credits & debit ) account based
4. Pay n Go, NFC – around the cornerThe Real-time Payments Revolution
We started on this journey 8 years ago through the
introduction Zimswitch Instant Payment Interchange
Technology (ZIPIT).
ZIPIT is a versatile, enhanced data payment platform that
is used for everyday payments.
• Transactions can be initiated from any channel (Mobile,
ATM, POS and the Internet).
• ZIPIT transfers can be made to any bank account or any
mobile number.
• Participants are called to ensure that transaction data
reflects on the beneficiary’s statement.
1994-2018 Zimswitch. Switching you on to financial flexibilityTechnology Versatile Transaction Sets
1994-2018 Zimswitch. Switching you on to financial flexibilityHow has Zimswitch addressed the challenge of
Cyber Fraud and Security?
1994-2018 Zimswitch. Switching you on to financial flexibilityFraud and security
What Do We Have to Achieve
HEADER
ParagraphFraud and security
Zimswitch implementing PCI DSS project
HEADER
Using strong cryptography and security protocols to safeguard sensitive
cardholder data during transmission over open, public networks, including
Paragraph
the following:
Only trusted keys and certificates are accepted.
The protocol in use only supports secure versions or configurations.
The encryption strength is appropriate for the encryption methodology
in use.
Introduction of Chip & Pin
ISO 27001Fraud and security
• Cryptography algorithms to provide privacy. - HSM encryption – 3 DES
HEADER
• Digital Certificates and Digital Signatures
Paragraph
for Web servers, to provide authentication.
data integrity, and non-repudiation service.
• Secure Sockets Layer (SSL) uses all these techniques
to achieve trusted communication.How is Zimswitch contributing to the National
Financial Inclusion Drive?
1994-2018 Zimswitch. Switching you on to financial flexibilityFinancial Inclusion
HEADER
- ZIPIT to mobile Paragraph
- Reduced transaction charges
- Interoperability with MNOs (bank to wallet/ wallet
to bank)
- Interoperability with microfinance institutions
- Supporting mPOSFinancial Inclusion
mPOS drive
HEADER
Paragraph1994-2018 Zimswitch. Switching you on to financial flexibility
ZEEPAY – Electronic Funds Transfer solution
Payments Hub ZEEPAY Payments Hub
Core Core
Bankin Channels EFT Debits Channels
Banking
g EFT Credits (Batch,
(Batch, RTC) Mandate
management)
BANK A BANK B
RBZ - Clearing and
Settlement1994-2018 Zimswitch. Switching you on to financial flexibility
Zimswitch’s Vision for Payments in Zimbabwe
Universal adoption Cash-lite economy Low Cost
of electronic and reduced reliance on cash by of payment systems to
innovative payments consumers and business users
What we need… Desire outcomes…
Leveraging on existing Systems that are fully
infrastructure through interoperable, easily
interoperability accessible, and efficient
Regulatory oversight an New innovations that do
support on new not introduce undue risk
innovations in the market
Collaborative innovation Shorter innovation cycle
and quick adoption of and quick time to market
new products
1994-2018 Zimswitch. Switching you on to financial flexibilityOur Message to International Schemes
Dear…
.
We are open for collaboration
1994-2018 Zimswitch. Switching you on to financial flexibilityIn Closing… 1994-2018 Zimswitch. Switching you on to financial flexibility
1994-2018 Zimswitch. Switching you on to
financial flexibilityCopyright © 2018 Zimswitch.
All rights reserved.
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