The CEO of the Ghana Interbank Payment and Settlement Systems (GhIPSS), Archie Hesse, has suggested the need to make cash transaction more expensive in the country as a way of encouraging people to embrace electronic payment systems.
According to him, the country has put in place all the necessary infrastructure and other mechanisms that will support the cashless economy. However, people do not patronize the systems and still resort to using cash. As such, he believes making cash transactions more expensive will serve as a deterrent to people.
“Apart from education, I think that we should also make the use of cash very expensive in this country and that will deter or at least move us very quickly into the electronic payment. I think that is something that will help. There must be such a situation because the services are there”.
Speaking on PM Express on Thursday night, Mr. Hesse highlighted that Ghana has most of the infrastructure that will drive the cashless economy more than most countries in the world. He noted that the country has come a long way in the cashless economy agenda. He highlighted that it’s very easy to transact using various electronic platforms such as the universal POS and the universal GHQR code.
Carrying cash is a form of prestige
Meanwhile, Mr. Mark Badu-Aboagye, CEO of Ghana National Chamber of Commerce and Industry (GNCCI), speaking on the same program, highlighted that it is in the interest of businesses and individuals to use electronic payment systems. This, according to him, will help avoid any dangers associated with holding cash. Also, he noted that transporting cash is riskier and costlier to businesses than the infrastructure they require for cashless transactions. Moreover, Mr. Badu-Aboagye indicated that economies that have embrace cashless transactions are benefiting as it contributes to their GDP growth.
However, Mr. Badu-Aboagye lamented that we live in an economy where people want to carry money of prestige even though there are digital platforms available. As such, he noted that going cashless is one form of cultural change that people of Ghana must embrace. As a result, he called for massive education to aid the transition from a cash dependent to a cashless economy.
Furthermore, Mr. Badu-Aboagyecalled on the banks and financial institutions to put in place the necessary financial architecture so that “if we are going cashless, we are also secured and we are safe”. Moreover, Mr. Badu-Aboagyeexpressed the readiness of the Chamber to collaborate with the necessary institutions to drive the cashless agenda.
“And I think that education is very key. We should be able to convince and educate people that its more convenient and easier to do transactions without cash. So, there should be a conscious effort from all of us to move from this cash economy to cashless economy. I think that is it in the interest of people; it is in the interest of businesses because people will not be killed, people’s money will not be taken from them if you are using cards and all these forms of cashless transactions”.
Need to make payment systems convenient
Furthermore, Dr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA) indicated that e-commerce is very important at this time and as such, traders do have a choice but to embrace the change. The GUTA president also agreed with the CEO of the GNCCI, Mr. Badu-Aboagye that more education is required to sensitize people to embrace cashless transactions. He however, called on the banks, telecos and the GhIPSS to review the limits on MoMo and other digital transactions to enable people transfer huge sums of money. In a nutshell, the GUTA president calls for the need to make digital payment platforms convenient for everybody to make them accept the cashless economy.
“So, going digital in our payment is the sure way out. The only thing left is education. If we intensify education then, we will be there. The traders themselves, especially the very informal sector, have now seen the convince of the digital payment systems. We should be able to eliminate fraud, the scammers and the hackers and all that. If we are able to do that for people to have a lot more of comfort, then that is the sure way forward”.
Another panelist who joined the discussions was Mr. Alhassan Andani, Former President, Ghana Bankers Association. Speaking from the perspectives of the banks, Mr. Andani indicated that we have to acknowledge the progress that we have made as country as far as using electronic payment systems are concerned. However, he assured that banks are putting in place the necessary measures to ensure the safe transfer of cash in the country.
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