- Innovative Offerings: Smile Cash, a versatile digital wallet, and Smile & Pay, an e-commerce payment gateway, enhance accessibility and user experience
- Market Disruption: These platforms aim to compete with established players like EcoCash and Zimswitch, leveraging a comprehensive ecosystem
- User Incentives: Offers transaction-free services for now to encourage user adoption
Harare- ZB Financial Holdings, a prominent financial services provider in Zimbabwe, has launched two innovative digital payment solutions: Smile Cash, a digital wallet, and Smile & Pay, a payment gateway designed to revolutionise e-commerce.
These platforms enter a highly competitive market dominated by established players such as EcoCash, Zimswitch, InnBucks, Omari, Visa, and Mastercard.
ZB Financial Holdings has invested quarter a million in the launch of these platforms, registering 900 agents to facilitate their rollout. The Visa Card and MasterCard applications are set to launch next week as part of ZB's latest suite of applications.
This strategic investment and agent network aim to enhance accessibility and user adoption in a market where established players dominate.
Additionally, ZB plans to offer some time of transaction-free services, encouraging users to adopt these innovative solutions without the burden of fees.
This survey note evaluates the competitive advantages, potential downsides, customer acquisition strategies, and global fitness of Smile Cash and Smile & Pay, drawing comparisons with existing platforms to highlight their unique positioning and challenges.
Features and Functionalities
Smile Cash is a versatile digital wallet accessible via mobile app or USSD, enabling peer-to-peer (P2P), consumer-to-business (C2B), business-to-consumer (B2C), and government-to-consumer (G2C) transactions.
Its features include self-onboarding, self-card linkage, cardless withdrawals, multi-currency support, QR code payments, bank transfers, ATM/POS transactions, bill payments, virtual ZB cards, merchant payments, online payments, agent cash-in/cash-out, local remittances, and transaction history with notifications.
Additional products like loans, savings, and rewards enhance its appeal.
Smile & Pay, on the other hand, is a payment gateway tailored for e-commerce, supporting online shopping, bill payments, and business expense management, with the group stating, “Whether you are shopping online, paying bills or managing your business expenses, Smile and Pay offers a seamless and secure payment solution tailored to meet all your needs,” as per their circular.
The platforms integrate with a robust ecosystem, including banks, fintechs (e.g., EcoCash, InnBucks, Omari), remittance services (e.g., ZB Remit, RIA, Mama Money, Mukuru, Small World), and corporates such as universities, colleges, schools, and training centers.
They also facilitate cross-border payments through systems like PAPS and TCIB, positioning them as comprehensive financial tools with a focus on financial inclusion and e-commerce. Features like bulk payments for salaries, pensions, and social grants, as well as merchant solutions for real-time payments, cater to a wide range of needs, including low-cost onboarding and convenience.
Comparison with Existing Platforms
Zimbabwe’s digital payment landscape is dominated by several key players, each with distinct strengths.
To compare, let’s examine each competitor:
EcoCash: Launched in 2011 by Econet Wireless, EcoCash is Zimbabwe’s leading mobile money service, offering money transfers, bill payments, airtime purchases, and more.
It has a vast user base and an extensive agent network, making it accessible even in rural areas, with mobile money payments accounting for 81.2% of all digital payments in 2016 and currently, most of payments, projected above 70% are done through EcoCash.
However, its tie to the Econet network limits accessibility for non-Econet users. Smile Cash’s broader ecosystem, including interoperability with banks and fintechs, and its multi-currency support, provide a competitive edge.
Additionally, Smile Cash’s bulk payment capabilities for corporates and government entities differentiate it from EcoCash, which focuses more on individual transactions.
Zimswitch: As the national payment switch, Zimswitch, launched in 1994, facilitates interbank transfers and POS transactions through its network of 19 commercial banks and two building societies, operating 2900 point-of-sale terminals and 393 ATMs
Its Zimswitch Online platform supports various payment methods and fraud prevention, but it primarily serves as infrastructure for banks and merchants rather than a consumer-facing platform.
Smile Cash and Smile & Pay leverage Zimswitch’s network while offering a more user-centric experience, making them direct competitors to Zimswitch’s ZIPIT Smart for small merchants. Smile & Pay’s e-commerce focus further sets it apart from Zimswitch’s more traditional banking-oriented services.
InnBucks: Launched by Simbisa Brands, InnBucks started as a loyalty program but has evolved into a full fintech service offering mobile wallets, savings accounts, microloans, and bill payments.
It has 1.8 million users and is the most popular free financial-sector app on Google Play, with less transactional charges for USD deposits and withdrawals, making it cost-effective. Just like EcoCash, it also rides on the customer base of Simbisa Brands.
However, Smile Cash’s broader ecosystem, including cross-border payments and e-commerce integration, positions it as a more versatile platform. Additionally, Smile Cash’s advanced features like QR code payments and virtual cards offer greater functionality than InnBucks’ current offerings.
Omari: Backed by Old Mutual, Omari is a network-independent mobile wallet launched in 2023, allowing users to register with any mobile line (Econet, NetOne, or Telecel) and send money to EcoCash or banks via Zimswitch, which EcoCash cannot do.
It also offers unique micro-insurance products like FoodCare and SchoolCare, accessible via USSD (*707#), mobile app, or WhatsApp bot
While Omari is a strong competitor due to its interoperability and financial security features, Smile Cash’s multi-currency support and Smile & Pay’s e-commerce gateway provide additional value. Smile Cash’s integration with a wider range of partners, including remittance services and corporates, further enhances its competitive positioning.
Visa and Mastercard: These global payment networks are widely accepted in Zimbabwe for card transactions, offered by local banks like CBZ, First Capital Bank, FBC and NMB Bank
They are essential for travelers and for making payments where digital wallets might not be accepted, with credit cards accepted almost everywhere due to cash shortages.
However, Visa and Mastercard are not direct competitors to Smile Cash and Smile & Pay in terms of digital wallets or e-commerce gateways. Instead, Smile Cash’s virtual ZB card and Smile & Pay’s merchant solutions could complement or compete with Visa and Mastercard in specific use cases, such as online payments and POS transactions.
Competitive Advantages of Smile Cash and Smile & Pay
Comprehensive Ecosystem and Interoperability: Unlike EcoCash, which is primarily tied to its own network, Smile Cash integrates with banks, fintechs, remittance services, and corporates. Its compatibility with Zimswitch and cross-border payment systems like PAPS and TCIB enhances its interoperability, allowing seamless transactions across platforms. This is a significant advantage in Zimbabwe’s fragmented payment landscape.
E-Commerce Focus: Smile & Pay’s tailored e-commerce solutions, including merchant QR codes and online payment integration, position it as a specialised platform for businesses. While EcoCash’s Steward Pay and Omari’s merchant payments exist, Smile & Pay’s focus on e-commerce could attract businesses seeking seamless digital transactions in a market where online payments are still evolving.
Bulk Payment Solutions: Smile Cash’s capability to handle bulk payments for salaries, pensions, and social grants makes it attractive to corporates and government entities. This is a unique selling point not fully matched by some existing competitors.
Despite these advantages, Smile Cash and Smile & Pay face several challenges:
Market Saturation: Zimbabwe’s digital payment market is crowded, with EcoCash holding a significant share due to its first-mover advantage and widespread adoption, as noted in historical data.
Zimswitch powers most POS transactions, while Visa and Mastercard dominate card-based payments. New entrants like InnBucks and Omari have also gained traction, making it difficult for Smile Cash and Smile & Pay to differentiate themselves.
Adoption Barriers: While self-onboarding and USSD access enhance accessibility, the platforms’ success depends on user education and trust. EcoCash’s established brand and extensive agent network give it an edge, especially in rural areas, as seen in mobile payment penetration statistics.
Technological Reliability: The platforms’ ambitious features require robust infrastructure. Any technical glitches or security breaches could erode user trust, especially given EcoCash’s proven reliability, as seen in user feedback on app updates.
Strategies to Win Customers
To capture market share in a space dominated by EcoCash and Zimswitch, ZB can adopt the following strategies:
Aggressive Marketing and Incentives: Launch campaigns highlighting Smile Cash’s multi-currency support, bulk payment capabilities, and e-commerce focus. Offering rewards, cashback, and discounts can attract users from EcoCash and InnBucks. Partnering with popular merchants for exclusive deals via Smile & Pay could drive adoption, leveraging insights from global payment trends.
Rural Penetration and Agent Network Expansion: EcoCash’s strength lies in its extensive agent network, particularly in rural areas. ZB must invest in building a comparable network for cash-in/cash-out services, leveraging partnerships.
USSD access ensures accessibility for feature phone users, but agent availability is critical.
Corporate and Government Partnerships: Smile Cash’s bulk payment feature is a unique selling point for corporates, universities, and government agencies. ZB should target these entities for payroll, pension, and social grant disbursements, positioning Smile Cash as a B2B solution. Collaborations with schools and training centers, already part of the ecosystem, can drive institutional adoption, aligning with trends in digital payments for businesses
Seamless User Experience: Prioritize a user-friendly interface and reliable transaction processing. Integrating chatbot support and real-time notifications can enhance customer trust. Learning from EcoCash’s success, ZB should ensure 24/7 customer support and rapid issue resolution to compete effectively, as seen in user feedback on app reliability.
Leveraging Cross-Border Opportunities: Zimbabwe’s diaspora is a key market for remittances. By strengthening partnerships with remittance services like Mukuru and Small World, and ensuring competitive exchange rates via PAPS and TCIB, Smile Cash can attract users seeking affordable international transfers, a feature EcoCash supports but does not dominate, as noted in regional payment system overviews.
Therefore, ZB Financial Holdings’ Smile Cash and Smile & Pay are ambitious entries into Zimbabwe’s digital payment market, offering a comprehensive ecosystem, advanced features, and a strong focus on e-commerce and financial inclusion. Their interoperability, multi-currency support, and bulk payment capabilities provide competitive advantages over EcoCash, Zimswitch, InnBucks, and Omari, but market saturation, and adoption barriers risks pose challenges.
To win customers, ZB must leverage aggressive marketing, expand its agent network, and target corporates and government entities. Globally, the platforms have potential in emerging markets, particularly for remittances and e-commerce, but competing with Visa, Mastercard, and established fintechs requires significant investment in technology, partnerships, and branding. With strategic execution, Smile Cash and Smile & Pay could redefine Zimbabwe’s payment landscape and make inroads regionally, but global dominance remains a long-term goal.
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