Overview
EcoCash was launched in 2011 by Econet Wireless with the purpose of catering for Zimbabwean clients. It is a mobile phone-based service used for money transfers, financing, and microfinancing.
EcoCash allows clients to deposit, withdraw, and transfer money in addition to being able to pay for goods and services from a mobile device. It also allows for the purchasing of pre-paid airtime bundles, and even allows clients to use it as a payment method when trading Forex.
EcoCash currently has more than 4 million registered customers in Zimbabwe and is available on Zimbabwean mobile numbers on any network. It is the Zimbabwean equivalent of M-Pesa and as a mobile money solution, it is primarily targeted at the unbanked population residing in Zimbabwe.
It can, however, be used by individuals who posses conventional bank accounts by linking their bank account with their EcoCash mobile wallet.
These wallets are far more cost-effective to operate than bank accounts in Zimbabwe due to the absence of monthly fees to which conventional banking clients are subjected.
The importance behind EcoCash as a method of transaction has increased substantially over the past few years as result of economic difficulties faced by residents of Zimbabwe.
This is due to the fallout of land reforms which were conducted in Zimbabwe twenty years ago in addition to the changes the local currency has experienced several times which has led to a dual currency regime operated for almost 10 years before the currency was cancelled by the Zimbabwean Government.
When considering such a substantially unstable currency regime, solutions such as EcoCash, especially for Forex traders, has become crucial.
Due to the severe weakness displayed by the Zimbabwean Dollar, the US Dollar gained popularity during the multi-currency regime and due to this, Forex trading in addition to other investments became popular as means of earning Foreign Exchange which could be used locally to combat crippling inflation.
How to register
Clients who are already Econet customers can simply visit an EcoCash authorized agent in order to complete an application form. For those who are not Econet customers, an Econet line can be purchased and registration can be done with any authorized EcoCash agent.
Upon registering, it is necessary that the client produce their original National ID, valid driver’s licence, or passport along with a copy thereof. Prior to registration, is necessary for the client to ensure that they have an active Econet SIM card.
It is a requirement for clients to register in person and it should be noted that an account cannot be opened on behalf of someone else.
How to use EcoCash as a funding method when trading Forex
Ecocash provides its clients with a foreign currency wallet which allows for transactions to be carried out in foreign currency. It is, however, necessary that traders who wish to make use of EcoCash ensure that they use a broker who supports the use of the payment method through which deposits and withdrawals can be made.
There are some Forex brokers who support the use of EcoCash by making use of a payment gateway called PayNow however, this may require additional registration of an account with PayNow so that the trader has access to their account through which they can perform deposits and withdrawals with EcoCash on their Forex trading account.
- When making a deposit, traders can simply click on the PayNow button and log into their PayNow account. This page is often displayed in the member’s area located on the trader’s Forex account under the section dedicated for account transactions.
- After accessing this page and selecting the relevant options, the trader can enter the amount that they wish to deposit into their trading account and the trader will be redirected to a page which displays the various payment channels offered on PayNow.
- From here, the trader can click on EcoCash or select the selection box next to the EcoCash option. The trader will be required to enter their full name, registered Econet phone number, and other EcoCash particulars required in addition to the trader’s EcoCash PIN.
- Once this has been entered, the trader will receive an authorization request on their AC unit phone number. This serves as the Two-factor authentication procedure which is required to complete the transaction.
- Once the Two-factor authentication has been completed, the deposit transaction is completed instantly. The same method must be followed when making a withdrawal from the trading account to an EcoCash wallet.
Final Thoughts – The Pros and Cons of using Ecocash to trade Forex
| Pros | Cons |
|---|---|
| 1. Allows for both local and foreign currency transactions | 1. Losing either the SIM or the mobile device can involve risks to the user and their capital |
| 2. Widely available payment method to Zimbabweans | 2. There are not a lot of Forex brokers that support EcoCash as a payment method |
| 3. Once registered with EcoCash, all transactions can be done via a mobile device | |
| 4. Instant deposits and withdrawals | |
| 5. No additional transaction or banking fees when making deposits and withdrawals | |
| 6. Additional security through 2FA |
Frequently Asked Questions
Does Ecocash work in South Africa?
Yes, Ecocash is now available in South Africa.
Is Ecocash safe?
Yes, Ecocash is safe.
Is there a Ecocash app available?
Yes.
What do I need to register for Ecocash?
To register you need your Zimbabwean passport.
Are there fees when making deposits and withdrawals on Ecocash?
No additional fees.
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