Business and Finance

Reserve Bank of Malawi demands seamless digital payment systems

Reserve Bank of Malawi demands seamless digital payment systems

The Reserve Bank of Malawi (RBM) has challenged digital payment systems providers to clear and eliminate challenges faced by consumers when transacting on digital platforms.

RBM Deputy Governor Responsible for Operations William Matambo disclosed this in Lilongwe on Thursday at the start of the Digital Payments Challenges; Transaction Failure and Delayed Refunds Causes and Solutions Conference.

The development comes at a time Malawi registered a total of 36,481 complaints of digital payment challenges out of 396.6 million digital transactions from April 2023 to March 2024.

According to Matambo, although the failed transactions and delayed refunds comprise 0.001 percent of the total digital transactions, they result in frustration and anger, with some people going to the extent of cursing.

He observed that another area of concern is utility bill purchase failures.

The deputy governor said as digital channels become the preferred method for paying utility bills among Malawians, the frequency of failed transactions poses a substantial challenge.

“Our focus must extend beyond mere system availability to include system reliability and efficient troubleshooting. Ensuring that POS and ATM systems are reliable and that issues are addressed swiftly will contribute to a superior user experience and minimise disruptions to everyday transactions,” he said.

He observed that addressing the challenges with speed could help to retain users’ trust and confidence in digital payment products and services.

Matambo said RBM remains committed to regulatory oversight and will continue to refine relevant regulations and impose sanctions on responsible parties where necessary.

“We will also continue to foster collaboration among stakeholders to ensure a future where digital payments are reliable, secure and efficient.

“It is my expectation that service providers will take the challenges head on and aim to resolve them with the needed speed,” he said

ADVOCATES CONSUMER RIGHTS—Kapito

Consumers Association of Malawi Executive Director John Kapito said digital payments challenges are frustrating to the consumer.

Kapito said consumers have been turned into slaves of their own money because of the delays in refunds and inefficient PoS and ATM transactions.