Lilongwe – BankservAfrica’s transactions cleared on an immediate basis (TCIB) scheme could be a game changer for low-value cross-border payments following successful piloting in the SADC region.
The TCIB scheme allows immediate clearing of single credit “push” transactions that are settled on a deferred basis.
The scheme provides an e-payment solution in an environment in which many people do not have access to the formal banking sector.
Several companies were engaged by BankservAfrica to participate in the TCIB testing phase, and these included Virtual Technology Services of Namibia, which is described as a pioneer of e-money and e-payments solutions with its PaynGo product.
As part of the pilot project, participating entities were requested to demonstrate their ability to use their technology platforms to initiate cross-border transactions between several SADC countries.
On 30 July 2021, VTS became the first organisation in SADC to successfully do this by transferring the amount of N$20 in local currency from their digital e-money platform located in Namibia to a bank in Zimbabwe. The transaction was processed in real-time, meaning the Zimbabwean recipient received the money within seconds of the transaction being completed. The transaction was automatically converted to local currency at withdrawal point.VTS technical director Mr Paul Rowney said, “The 30th of July was an exciting, mind-blowing day for VTS and the entire participating regional team, to be part of this new initiative and for being at the forefront as the first of two companies located in Namibia and Zimbabwe to successfully send and receive payments over the TCIB scheme.”