The Chartered Institute of Bankers (CIB) Ghana, has noted that in consonance with the Bank of Ghana Report which stated that the usage of mobile money in non-cash retail payments overtook the traditional cheque transactions in the country, it has projected the trend to be remain so till the end of the year.
The Chartered Institute of Bankers (CIB) Ghana averred that, based on the growth trajectory, it is hopeful that the usage of mobile money in non-cash retail payments would surpass traditional cheques far more than the GH¢389 billion recorded for mobile money transactions so far in 2021.
In the intervening time, it is not clear whether the trend of more consumers switching to the use of mobile money for transactional purposes will continue after the proposed 1.75 per cent levy on mobile money and other electronic transactions which takes effect next year.
However, the President of the institute, Right Rev. Patricia Sappor, observed that if the trend continues, the total value of mobile money transactions would surpass cheque transactions by far next year.
How Digitisation Helped during COVID-19
Rev. Sappor stated that the trend of more consumers switching to the use of mobile money has also enhanced the country’s quest to continue to improve financial inclusion among the citizens.
“In view of the above, we saw many banks in the country rise to the occasion at the height of the coronavirus (COVID-19) pandemic by ensuring digital platforms were readily available and working seamlessly to prevent any interruption in banking services to customers.
“It is important to note that the banking industry is among the few in the country which was future-ready for COVID-19 by actively driving the adoption of digital products across its customer base.”Rev. Sappor
The President of the Institute noted that digitisation would continue to remain a core pillar of banking in the country.
“Today’s customer needs have become increasingly complicated and sophisticated. The pandemic has also contributed to a more complex environment, where any entity which does not embrace the changing trends might not survive.”Rev. Sappor
He thus commended financial institutions and the Bank of Ghana for their immense roles towards a successful payment system in the country.
“I also acknowledged the Bank of Ghana’s efforts in deploying comprehensive reforms and interventions, especially during these unprecedented times, by providing the financial sector with various regulatory reliefs that allowed banks to provide financial support to critical sectors of the economy as part of the COVID-19 policy responses”.Rev. Sappor
It can be recalled that the government of Ghana stated that the value of digital transactions rose by 120% between February 2020 and February 2021. In the previous year it rose 44%.
By the foregoing, the government is aware that most people are now accustomed to online transactions. Online transactions are convenient, and people will find it difficult to revert to physical transactions, hence the imposition of the new e-levy.
Though, many Ghanaians are not in favor of the e-levy because of existing charges on mobile money, there is also the risk that it could derail the growth of the Ghanaian FinTech ecosystem by making Ghana unattractive for Fintech startups. As such, the projections may actually look different when the e-levy is finally implemented next year 2022.