Archie Hesse, the Chief Executive Officer of the Ghana Interbank Payment and Settlement Systems (GhIPSS), has disclosed that businesses in Ghana will in some months be able to engage in financial transactions across Africa.
According to him, the Central Bank Payment systems on the continent are being linked to enable international transactions using the GhIPSS gh-link platform easier.
“It is just a question of time and I believe in about six months, if not less, you will start seeing the efficiency, and [businesses] will start having inter-country transactions seamlessly using our domestic card”.
Additionally, Mr. Hesse revealed that, Ghana has modernized the payment systems when it comes to domestic transactions.
That notwithstanding, he explained that, “we are slowly and gradually beginning to look at the West African zone”.
“So, we have had engagements with our counterparts where we are looking at the possibility of linking the national switches together”.
Inter-country transactions
Mr. Hesse further revealed that, a key component is “to iron out the inter-country forex”.
“There is the need for us to have an inter-country arrangement where, between the Naira and the Cedi, on a daily basis, we know what the exchange rate is to avoid the use of the international currencies”.
To achieve this, he explained that, African banks could offer support and “so maybe there is the need for us to ride on them”.
Furthermore, Mr. Hesse emphasized the role of international card schemes like Visa and MasterCard could play in enabling this.
“When it comes to inter-country transactions, there is the need for us to ensure that becomes a reality”.
He further underscored the significance of Ghana being in a position to be recognized as one of the countries at the forefront of being a cashless society.
Prior to this, GhIPSS had disclosed that all electronic payment transactions will be migrated onto new servers it has secured. The upgraded servers would be used for the next five years.
According to Mr. Hesse, the move should help address challenges associated with electronic transactions including mobile money and interoperability payments.
Migration of electronic payment
Some users earlier complained they were unable to transfer funds from one network to the other on the interoperability platform.
“These are some of the things that we had anticipated. So most of the things we are currently doing are work around. We are not saying all the issues will be addressed but other stakeholders are also working feverishly to solve all the challenges”.
He noted that, although those challenges are being resolved, the new servers should mitigate such problems.
GhIPSS witnessed consistent growth in 2017 in the value and volume of its various transactions since its inception.
The value of transactions increased from GH¢174 billion in 2016 to GH¢208 billion, representing a growth of 19 per cent.
This was achieved through its four platforms, including the Cheque Codeline Clearing (CCC) System. This recorded a value of transaction of GH¢179 billion. The Ghana Automated Clearing House (GACH) system also recorded GH¢24.4 billion, and the e-zwich platform which recorded GH¢3.4 billion.
The value of transaction for the gh-link platform was GH¢ 600 million. Alos, GIP, as service on the gh-link platform recorded GH¢83 million.
This was reckoned as great news for the country as it appears more people kept switching to electronic payments daily.
A switch to electronic payment was expected to prevent and or contain risks in payment, clearing and settlement systems; and also help establish a robust oversight and regulatory regime for the payment and settlement system.
It would also bring efficiency to fiscal operations of the government, deepen financial intermediation, as well as promote financial inclusion without risking the safety and soundness of the banking system.
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