Digital airtime and data transactions to save forex; As scratch are being phased out

* This is not brand new mechanism — most of the mobile network operators and mobile internet providers already provide digital top-ups

* But what we have pushed is for a fast-tracking for fully adoption of digital ways and means of transactions

By Lesnat Kenan, MANA

Malawi Communications Regulatory Authority (MACRA) Director General Daud Suleman has highlighted the importance of phasing out physical airtime and data scratch cards in Malawi, saying this will help the country to save forex used to import the scratch cards.

He made the remarks on Tuesday at Sunbird Capital Hotel in Lilongwe during the press briefing on the phasing out of physical airtime and data scratch cards in Malawi, saying: “The Authority has issued out directive, requiring that all licensed operators that are in the business of mobile networks in Malawi should move from providing top-ups from scratch cards to begin using digital means of topping up.

“This is not brand new mechanism — most of the mobile network operators and mobile internet providers already provide digital top-ups but what we have pushed is for a fast-tracking for fully adoption of digital ways and means of transactions.”

He added that the development is part of government’s initiative to promote digital transactions and limit cash usage and promote economic growth.

In his remarks, Airtel Malawi Managing Director,

expressed his excitement for the development, saying this will help to reduce distances for transactions, especially for the customers in rural areas.

Kamoto also added that Airtel Malawi has already surpassed 80% in terms of usage of digital solutions to recharge airtime and buy bundles and that only seven percent of customers is still using physical airtime and data transactions.

“With the coming in of directive from MACRA, we are putting mechanism to expand further on our agents’ network, especially in rural areas, as well as communicating to customers on what we are going to do so that everyone in the country embraces this digital recharge,” Kamoto said.

The phasing out process started yesterday on Labour Day (May 1) and MACRA is expecting that all mobile network operators will fully complete moving away from physical scratch cards to digital top-up platforms by 31 December 2024.

The airtime scratch cards were slowly becoming obsolete as the public are now buying airtime and internet bundles through mobile money services of Airtel Money and TNM Mpamba.

When one does have cash in the mobile money wallet, they simply approach a transaction agent readily available who facilitates for the airtime as well as the internet data.

Scratch cards also had their disadvantages of waste pollution as most users of the paper cards just carelessly discarded them anywhere without any remorse of taking care of their environment.

Both Airtel Malawi and TNM always send SMSs encouraging customers to transact digitally in as far as buying of airtime and internet bundles is concerned.

TNM introduced an innovation of Mpamba Ndikankhe through which customers transact for services on a loan package to be refunded through the same Mpamba once funds are deposited on it.

At the same time, TNM also rewards its customers with Smile Rewards in which the more one transacts through Mpamba, they receive points rewards, which can be redeemed into airtime or internet bundles.

All this is about inculcating a cashless society to save on costs met by the Reserve Bank of Malawi of replacing overused bank notes.— Additional reporting by Duncan Mlanjira, Maravi Express