As Malawi’s trusted digital financial services provider, the company has completely removed transaction fees applicable for some services offered on Mpamba.
The development comes following a meeting The Reserve Bank of Malawi (RBM) held with Mobile Money Operators, SACCOs and Microfinance institutions in Lilongwe recently.
Health experts have highlighted exchange of paper money in financial transactions as a potential area for transmission of Coronavirus hence mobile money is considered smart option to reduce spreading of the virus through physical handling of currency.
TNM Mpamba Limited has announced that all person-to-person transfers within the Mpamba Network are free for the next three months starting Wednesday 23rd April 2020. The fee waiver also applies on all transfers going to other Mobile Money Operators via the National Switch.
“At TNM Mpamba, we put the lives of our customers at heart. This development empowers our customers to transact electronically and reduce the physical exchange of cash, which is one of main conduits for the spread of the Covid-19 pandemic that has devastated economies worldwide. This will also enable our customers to complete most of their financial transactions within the confines of their homes and in cases where they have limited movement” said Michiel Buitelaar TNM Plc Chief Executive Officer.
Buitelaar said the zero-rating of person to person transfers will enable Malawians to help their friends and family members financially through instant money transfers to them irrespective of where they are in the country around the clock. He also noted TNM Mpamba has also implemented several other measures beyond the recommendations of their meeting with RBM.
“Although the Reserve Bank of Malawi recommended reduction of the fees incurred by customers on transfers to other Mobile Money operators via the National Switch to MK20 (this being the fee contributing to the sustenance of a national asset, Natswitch), we have totally scrapped off the fees and will instead be paying K20 to Natswitch from our other revenue lines for every transfer that our Mpamba customers make," he said.
The TNM CEO also announced that they have also increased the daily transaction and account holding limits on both personal and Agent accounts.
“The maximum value for individuals have been increased to K1.5 million from K750,000 while a personal account can now hold up to K2 million at any point in time as approved by the Reserve Bank. TNM Mpamba is also providing merchant wallets, which enables customers to make payments to merchants and specialised institutions without being charged fees,” said Buitelaar.
“ TNM Mpamba is also providing merchant wallets, which enables customers to make payments to merchants and specialized institutions without being charged fees,” said Buitelaar.
According to RBM Governor, Dr. Dalitso Kabambe, the new measures are part of Malawi’s efforts to prevent the spread of Covid-19 and mitigating its effects as electronic payments also greatly enhance social distancing during this pandemic.
Malawi has been spending not less than MK12 billion per year over the past few years in replacement of worn out banknotes hence a move to the more inclusive digital finance would lead to greater contributions to the country beyond managing the current pandemic.
TNM Mpamba boasts more than 2.5 million customers, majority of whom would not ordinarily have access to formal financial services. Mpamba affords users convenience as it is available 24/7 from one’s home comfort.
It is also less expensive and time saving taking into account the cost of travel to perform financial transactions like deposits, withdrawals, bill payments among other functions while at the same guaranteeing security compared to other traditional means of sending money.
Apart from the Mpamba interventions above, other TNM measures in the Covid-19 fight include provision of free internet access for public schools learning resources, provision of connectivity for Virtual Doctors and an on-going SMS awareness campaign on Coronavirus preventative measures.