The total value of E-zwich Transactions has increased by GHS 269.2 million between October 2019 and October 2020, representing a growth of 44.7% over the past one year.
According to Macroeconomic and Financial Data from the Bank of Ghana, the Total Value of E-zwich Transactions increased to GHS872.0 million in October 2020 from GHS602.8 million recorded in the corresponding month of 2019.
Between September and October 2020, E-zwich transactions went up by GHS218 million which culminated in a month-on-month growth of 33.3%. The total value of E-zwich transactions was GHS 654.0 million in September 2020.
The data shows that even though the value of transactions went up between September and October 2020, cumulative enrolment was constant at 3.2 million.
However, the increment in the value of E-zwich transactions corresponds to the Cumulative Enrollment on this payment system on a year-on-year basis.
Total enrolment on the E-zwich payment system increased marginally from 3.0 million in October 2019 to 3.2 million in October 2020. The incensement of 0.2 million represents a year-on-year growth of 6.7%. Compared to other payment systems, the enrolment on E-zwich has been stagnant at 3.2 million since July 2020.
Despite the impressive growth in the Total value of E-zwich transactions, the number of transactions has gone down hugely from 1152 thousand recorded in October 2019 to 613 thousand in October 2020. This means that the total value of transactions reduced by 539 thousand, a decline of 46.8% over the period.
Further analysis of the data reveals that the total number of transactions declined by 408 thousand between September and October this year. The total number of transactions was 1021 thousand in September 2020. This represents a 40% decline in the number of E-zwich transactions within one month.
Also, the latest data on digital transactions and payments, especially mobile money transactions reflects significant growth. Cumulatively from January to October 2020, the number of mobile money transactions increased to 278 million, up from 188 million the same time last year. In terms of values, total mobile money transactions more than doubled to GH¢58 billion, from GH¢28.4 billion last year.
The total value of Gh-link transactions also increased from GHS23.6 million in October 2019 to GHS 29.9 million in October 2020. Year-on-year growth of 27.7%. The total number of transactions, however, remained unchanged at 71 thousand for October in 2019 and 2020.
Speaking on the Payment System and Financial Technology, the Governor of the Bank of Ghana, Dr. Ernest Addison stated in his address at the 2020 Annual Dinner of the Chartered Institute of Bankers that “COVID-19 has pushed the frontier towards financial technology and from observations, banks have already taken up the challenge to digitize financial services and product offerings”.
Dr. Addison stated that in line with provisions in the Payment Systems and Services Act 2019 (Act 987), the Payment Systems Advisory Committee was established to advise the Bank of Ghana on regulations, oversight, operational and technical issues of payment, as well as clearing and settlement systems.
In May 2020, the Bank announced the establishment of the Fintech and Innovation Office responsible for financial technology and payment innovations. The Office is expected to drive the Payment System and Financial Technology digitization agenda of the Bank of Ghana and is responsible for licensing and oversight of dedicated electronic money issuers (mobile money operators), and payment service providers (PSPs), among others.
Dr. Ernest Addison stated in his address that since the introduction of the Payment Systems and Services Act, 2019 (Act 987), which permits the Bank of Ghana to license and supervise FinTechs, we have seen significant interest from both local and international entities in securing Payment Service Provider licenses to operate in Ghana.
The Bank of Ghana, according to Dr. Addison, has so far issued eight (8) payment service providers’ licenses. This includes three (3) in the electronic money issuer category, four (4) in the Enhanced Payment Service provider category, and one (1) in the Standard Payment Service Provider Category.
“Ghana’s payment systems achieved another milestone with the launch of the universal QR code payment solution in March 2020. This strengthens the financial inclusion agenda and promotes the use of contactless payments, which is critical in the fight against the coronavirus”, Dr. Addison added.
