Ghana Mobile Money Account Increased to 44 Million in Second Quarter

The Bank of Ghana has announced that mobile money accounts have increased thirty-fold to 44 million as of June 2021. As a result, the volume of mobile money interoperability transactions he added has also increased twenty-fourfold since its launch in 2018 to 10.3 million as of June 2021.

In addition, GHIPSS Instant Pay volume of transactions has also increased significantly since 2016. However, the bandwagon of mobile money in Africa continues strides attributed to the comfort, cheap and accessibility to those in rural and remote areas to transact without necessarily needing a bank account to make payment. The Bank of Ghana Governor made these remarks in a keynote address presented on his behalf by Kwame Oppong, Head of Fintechs and innovation at the MTN MoMo Stakeholder Payment Forum in Accra. The forum, which was under the theme: Digitizing Payments in Ghana: A Collaborative Effort for Success’, brought together various stakeholders in the financial sector, including the Bank of Ghana Fintechs and some merchants.

Kwame Oppong, however, noted that despite these advancements, cash usage in the country is still high, despite its attendant risks. This clearly shows that the adoption of digital payments remains uneven, and there is room for improvements to move the frontier towards financial inclusiveness through broad-based digital payments”, he noted. To leverage on the existing opportunities, the Banks long-term strategy for the payment systems, he said, is to push for more collaboration among providers of digital financial products and electronic financial services.

“These collaborative initiatives have provided open and fair access to a shared payment infrastructure for banks and non-banks. It also serves as a good example of a strategy of collaborative competition which has been shown to increase scale and widen the scope of mobile money operations”, he added.

Kwame Oppong stressed that the strong partnership between banks and non-bank financial institutions for the provision of digital payments is expected to strengthen further, with the delivery of innovative value-added products and services to enhance economic digitalization. He, however, urged market players to continue to harness customer data to develop targeted value-added products by the confines of the data protection Act and regulations to sustain the process. Kwame Oppong also seized the opportunity to commend MTN for the initiative and commend the company’s Management for demonstrating solid commitments towards the country’s financial inclusion agenda and playing a critical role in Ghana’s mobile money space.

Meanwhile, this height of mobile money’s adoption rate has also been touted to the timely policies to encourage Ghanaians to use this service. Apart from the virus spread, prompting the authorities to announce a national lockdown and discourage the masses from using paper money to curb the virus. The policies introduces over the years played a huge role, such as the Bank of Ghana’s reduction in the mobile money interoperability charge, which used to be 1.5 per cent and reduced to 1 percent. The mobile money interoperability payment system has made it easy to transfer money across different telecos and between bank accounts and mobile wallets, a unique feature of Ghana’s interoperability.

The timely hilled policies in reducing mobile money fees and its interoperability and Covid-19 outbreak have been beneficial to the country to be ranked 4th in Africa for financial inclusion. It is aiding different economic sectors that have significantly benefited from it, such as the gambling and mobile betting industry, e-commerce, and a host of other businesses.

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