Mobile Money Transactions Hit GHS52.35bn

Mobile money transactions have increased by about 177 per cent between 2013 and March 2018, reaching GHS312. 93 million and valued at GHS52.35 billion transactions in March this year, Dr Ernest Addison, Governor of the Bank of Ghana (BoG), has said.

He said companies with GHS48.24 million transactions were valued at GHS5.91 billion in March 2015, while mobile money accounts had increased from 8.20 to 25.3 million.

The Governor said the increase in mobile money transactions presents a huge opportunity to mobile money operators to bring on-board all economically-active people into the formal economy, adding that it presents a good prospect for domestic revenue mobilisation in achieving the ‘Ghana Beyond Aid’ agenda and Africa’s economic emancipation.

Dr Addison, speaking at the launch of the Mobile Money Interoperability Project in Accra on Thursday, urged banks and mobile money operators to continue working together to develop new, innovative and efficient mobile-based products and services at reasonable costs to meet the demands of consumers.

The Mobile Money Payment Interoperability is the service which allows direct and seamless transfer of funds from one mobile money wallet to another mobile money wallet across networks, which was developed by the Ghana Interbank Payment and Settlement Systems (GhIPSS).

It creates convenience for mobile money users to transact business and drives financial inclusion, lowers cost of transaction, increases service reach and reduces reliance on cash for payments.

It also provides a financial transaction engine that is versatile, efficient and robust and enhances patronage by both the banked and unbanked segments of the population.

Dr Addison said the roll-out of the initiative marked a significant milestone in collaborative efforts between stakeholders in the financial services sector to push the boundaries of Ghana’s payment systems.

He said the launch further attested to the BoG’s broad objective of promoting an all-inclusive, safe and sound financial sector, noting that collaboration between the financial institutions and the telecommunications sector would accelerate national economic growth and alleviate poverty.

Dr Addison commended Vice-President Dr Mahamudu Bawumia for his encouragement and for supporting the realisation of the system, and pledged the support of other market participants in ensuring the success of the programme.

He said with the implementation of the system, banks could leverage the existing 143,418 mobile money agents and 25 million mobile money accounts to expand the scope and appeal of electronic payments.

The BoG Governor challenged financial institutions to offer more innovative payment products that provide convenient, simple and speedy transactions at minimal costs as well as ensure efficient means of delivering financial services in deprived communities.

“Today’s launch started about a decade ago with the establishment of the Real Time Gross Settlement System, the Electronic Central Securities Depository, the Automated Clearing House system and Codeline Cheque Truncation system.

“All these systems have been working smoothly over the years and today, we are adding another layer to harness the advantages of technology and bring most economic activities into the financial system”, he said.

Dr Addison assured that the development of the country’s financial sector was on course, noting that the unveiling of the payment system was fundamental to that process.

“The full implementation of the system is expected to further deepen financial inclusion, promote the country’s cash-lite agenda and most significantly, serve as a viable vehicle for financial intermediation.

“Presently, the country is witnessing a shift to a new kind of retail banking system where a large segment of the population, previously unbanked, are being absorbed into the financial services sector, via mobile money”, he noted.

He said over the years, the BoG had taken measures aimed at strengthening the corporate governance and risk management structures and practices of the banking sector.

He noted that a stronger and resilient banking sector, together with the continued improvements in the payment systems, would help support the country’s growth agenda.

Source: GNA