Ecocash US$ wallet transactions in eight-fold spike

ECOCASH Holdings (Ecocash) says its US dollar wallet service recorded an eight-fold increase in transaction values during the quarter ended May 31, 2023 buoyed by the growth in users.
The fintech group introduced the US dollar wallet last year.
“Adoption and use of our US dollar wallet on the EcoCash platform has grown steadily during the quarter, with an increase in the number of active users, which has resulted in an eight-fold increase in transaction values, as customers took advantage of the convenience and reliability of our mobile money platform,” the group said in a trading update.

“We launched new features during the quarter, including 3D Secure Payments allowing secure and seamless US dollar payments for online Internet transactions through the EcoCash MasterCard debit card, which has been well received.”
Meanwhile, under the group’s digital banking platforms, the FCA accounts grew by 56 percent during the quarter compared to the same period in the prior year while VISA card volumes also improved by 59 percent.
“A growing loan book had a positive effect on interest income revenue contribution from 20 percent prior year to the current quarter’s contribution of 29 percent. The bank remains compliant with its capital position,” the group said.
Ecocash’s life insurance subsidiary recorded growth in US dollar policies from three percent to 56 percent during the quarter under review. The short-term insurance business saw a 116 percent growth in total policy-holders at the end of May 2023 as compared to the prior year. The growth was evenly distributed through all revenue lines. During the quarter, the digital platforms continued to focus and drive the anchor businesses in Healthtech and On Demand Services.
The quarter saw the launch of a smart solution called Asset Track, which allows businesses and individuals to remotely track their electronic assets.
“We are confident in the ability of these growing businesses to contribute to the broader EcoCash Holdings Group performance,” the group said.
Ecocash highlighted that it intends to raise capital to settle debentures through a Renounceable Rights Offer issue of US$30,3 million. Going forward, the group remains committed to its mission of providing innovative and accessible financial services to its customers.
“We are pleased with the progress we have made during the quarter, despite the challenging economic conditions,” the group said adding, “looking ahead, we will continue to invest in our people, technology, and partnerships to drive growth and deliver value to our customers and shareholders.”
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