Since digital transformation is advancing in Africa, Ghanaian financial service providers want to leverage it to boost financial inclusion in an environment where most of the population is still unbanked.
Last week, Ghana’s banking association GhIPSS launched GhanaPay, a mobile money service designed to accelerate financial inclusion in the country. According to the GhIPSS website, the mobile money service is provided by local “universal banks, rural banks, and savings and loans companies to individuals and businesses.”
It is open to anyone with access to a cell phone, with or without a traditional bank account. It works like the existing mobile money service, but also offers additional banking services, we learn. According to Ghana's Vice President, Mahamudu Bawumia, this groundbreaking initiative will help achieve the government’s ambition to boost financial inclusion, for the unbanked population notably, with technologies.
The launch of the service comes against a backdrop of accelerated digital transformation and "increased consumer preferences for convenient and frictionless payment options." According to Ernest Addison, Governor of the Bank of Ghana, the volume of instant payment transactions has grown from 420,000 cedis (about US$52,800) in 2016 to 31.4 billion cedis in 2021. In addition, the ratio of currency in circulation as a proportion of GDP dropped from 6.8 percent in 2016 to 4.7 percent in 2021, while the cheque usage per capita fell from 25.67 in 2016 to 18.9 in 2021.
"By establishing this common GhanaPay mobile wallet, the cost of testing any new technology for each bank is reduced and allows new ways of doing business. Indeed, this is an exciting development for Ghana’s payment systems landscape and demonstrates how collaboration with the banking sector can proffer solutions for the transformation and deepening of the payments ecosystem,” Addison explains.
Isaac K. Kassouwi
From Dakar to Nairobi, Kampala to Abidjan, mobile money has become a lifeline for millions of Africa...
Nigeria’s fintech landscape has undergone a seismic shift in recent years, driven largely by persist...
• WAEMU posts 0.9% deflation in July, second month in a row• Food, hospitality prices drop; alcohol,...
Airtel Gabon, Moov sign deal to share telecom infrastructure Agreement aims to cut costs, boo...
• Benin’s FeexPay and Côte d’Ivoire’s Cinetpay receive BCEAO payment service licenses• Both firms ex...
• DY6 Metals announced a binding agreement to acquire seven rutile exploration permits, including the Yaoundé Ouest project, in Cameroon.• The...
Uganda expects 8% yearly GDP growth, driven by oil, transport, and power projects Crude output set to begin mid-2026, with production projected to...
Saviu Ventures acquires stake in Jobo Interim, deal amount undisclosed This marks the 12th investment under the Saviu II fund for African...
Algérie Télécom reached 2.5 million fiber subscribers on September 14, offering speeds up to 1.5 Gbps. Algeria's FTTH connections grew from 53,000...
Surprisingly, only one African song made it onto Rolling Stone's list of the 500 Greatest Songs of All Time. The track is "Essence," a collaboration...
The Umhlanga Festival, also known as the “Reed Dance,” is one of the most iconic cultural events in the Kingdom of Eswatini in Southern Africa. Every...