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Paynet Services Suspended To Zimbabwe Banks Over Pay Dispute

FinTech

Paynet Services Suspended To Zimbabwe Banks Over Pay Dispute

Zimbabwe’s payments ecosystem has collapsed as players in the sector are failing to pay licensed and maintenance fees to Foreign Service providers, like Cambria Africa PLC.

Cambria Africa is an investment company with two wholly owned operations in Zimbabwe: payment service provider Payserv and industrial equipment supplier Millchem. Payserv has four business units: Paynet Zimbabwe, AutoPay, Loanserv and Softserv.

Paynet was once down on March 12 after their licensor suspended services due to non-payment.

Payserv has once again suspended its service due to a “collective refusal to pay historical and contracted pricing to Payserv Africa in US dollars.

This has affected all 22 banks it serves. An intensifying bank note shortage in Zimbabwe has forced the transacting public to adapt to electronic forms of payment.

Cambria claims the banks have been prohibited from paying external invoices by the central bank.

“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,” Cambria said.

Cambria said “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.”

Proud Zimbabwean Citizen, loving everything Tech related.

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