Paynet Services Suspended To Zim Banks

Paynet has suspended the facilitation of all electronic payments by Zimbabwean banks due to a pending debt of US$470 000. This has affected the processing of RTGS and ZIPIT transactions.

The company said it lost USD170,000 providing services to Zimbabwe banks in March and April and noted it is owed over USD470,000 for over 4 million transactions since May 1.

“The company cannot allow further accumulation of possible losses. The company estimates that in 2018 banks netted USD5 in profit for each dollar invoiced to them. Collectively in 2018 banks netted over USD22 million in profits via charges to its account holders for services provided by Paynet,” the company said.

“Despite this highly profitable relationship with Paynet, banks have stonewalled the company’s attempt to maintain the US dollar value of its services following the devaluation of the currency to ZWL5.86-to-1 US dollar on the interbank market,”.

According to the company, “not a single bank” has taken the steps toward paying its May invoice: “As and when such banks pay their invoice, they will be reinstated and their payments will be executed free of charge at any bank,”

Banks, including Stanbic Zimbabwe and the Industrial Development Bank of Zimbabwe (IDBZ) recanted written commitments made prior to 31 May to honour Payserv Africa’s invoices Representatives of these banks claimed they will await an “industry position” from the Interbank Operations Committee (“IOC”). 

It is alleged that, four days to the deadline for receipt of payment, the Company did not received a single indication, even verbal, that payment had been initiated, or approvals being sought from a single bank that they intended to pay.

The banks collectively have run up a bill to Payserv Africa of over US $420,000 for the period 1 May to 10 June 2019.

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