COMESA DIGITAL RETAIL PAYMENT SYSTEM WELCOME – MAKAMBWE

By Lumbiwe Mwanza

THE implementation of the Common Market for Eastern and Southern Africa (COMESA) digital retail payment platform is a welcome move as it aims to promote financial inclusion in the COMESA region, Southern African Cross Border Traders Association (SACBTA) Secretary General Jacob Makambwe has said.

COMESA has started the process of implementing the COMESA digital retail payment platform to facilitate on-line transactions among cross border traders in the region.

The retail digital payment platform, which is a pilot project, aims at enabling SMEs to access finance from commercial banks using statements from the on-line transactions as collateral. The payment system will lower the cost of transactions with traders being able to send money for as low as US$1 regardless of the amount among others.

The project will be piloted in eight countries before being rolled-out to all the 21- member states by June next year.

Speaking with The Scoop, Mr. Makambwe said that the deployment of this digital payments platform would address the existing barriers in trade and would result in a significant increase in the adoption of digital cross-border payment solutions amongst cross border traders.

He said that would increase trade within the region and support the development of digitally-inclusive economies within member states.

“The implementation of this COMESA digital retail payment platform is commendable as it will first be implemented in Malawi. We hope that it is successful so that it can be implemented in the other member countries.

“For this benefit to be realized, factors that lower the adoption rate of cross border digital payments by the cross border traders must be understood and addressed. Increased innovation around digital payment solutions that meet the needs of Cross Border Traders is essential to drive increased uptake and usage,” Mr. Makambwe said.

He said that the project represented a remarkable opportunity to drive economic growth and financial empowerment for all in the region.

He further noted the need for member countries to continue collaborating with relevant stakeholders to implement measures aimed at promoting digital financial inclusion and increasing digital solutions.