Most small businesses are yet to embrace plastic money usage leading to a decline in customers faced with cash shortages.
While plastic money usage has risen significantly from around three percent last year to 70 percent this year in the retail sector, several small businesses are yet to adopt it in a development which has negatively affected operations.
A survey conducted in downtown Harare showed that most businesses are conducting transactions on a strict cash basis since they neither do not have point of sale (POS) machines, bank accounts or mobile money transfer facilities.
While shop operators were unwilling to comment information gleaned from sources who spoke off camera revealed that the shops do not have the necessary regulatory requirements to qualify for POS machines.
Industrialist Mr Elliot Lumbe said most small businesses operate informally leading to their financial exclusion while Chartered Institute of Customer Relationship Management Africa Chief Executive Officer Dr Mthokozisi Nkosi highlighted need to reduce red tape in applying for plastic money facilities.
Requirements for POS machines from most banks comprise the company’s certificate of incorporation, CR14 document, operating license and director’s identity documents among others.