Mobile money ‘interoperability’ transactions hit nearly 100, 000
Some 96, 904 cross-network mobile money transactions took place in the first month of the launch of mobile money interoperability.
The transactions are valued at over 8.3 million Ghana Cedis.
These transactions are limited to transfers from mobile money wallet to another, according to a report on the first month performance of the mobile money interoperability, launched on May 10, this year.
The report sourced from the Ghana Interbank Payment and Settlement System (GhIPSS), also indicates that close to 40, 000 transfers were made from mobile money wallet to bank accounts valued at almost 4.2 million Ghana Cedis.
This brings the total volume of transactions, comprising mobile money wallet to another wallet as well as mobile money wallet to bank account, to over 136,000, valued at about 12.5 million Ghana Cedis.
The launch of mobile money interoperability made seamless transfer of funds from one mobile network to another possible.
It also becomes possible for people to transfer funds from their mobile money wallet into their bank account without physically going to a banking hall or using the platform of a Fintech.
Mobile money interoperability is a major breakthrough, which is expected to deepen financial inclusion in Ghana.
On the very first day it commenced, about 3, 000 transactions, were made. However, at the end of its first week, a total of 28,000 transfers valued at about 2.3 million Ghana Cedis were made.
In the second week, the total volume went up by about 30 per cent to 36,181 transfers valued at about 3.3 million Ghana Cedis, representing an increase of over 44 per cent in terms of value. This makes the first month transaction volume of almost 97,000, a significant leap in the volume of transactions, pointing to a growing use of the cross-network transfers.
Archie Hesse, Chief Executive Officer of GhIPSS, expressed no surprises at the significant growth in patronage for cross-network transfers.
He explained that there was a pressing need, which the interoperability came to fulfil. He was hopeful that volumes will keep rising and even go up exponentially when Fintechs come up with mobile money payment solutions that merchants can use.
Mr. Hesse said with the mobile money interoperability, there are two major developments that can occur to totally revolutionise the space.
He explained that the current process of transferring funds from one wallet to another may be too slow for merchants, so there is the need for a shorter process to be developed for merchants to use.
He said if this happens, there will be massive growth in the use of mobile money for payments.
The second development, he explained is when financial institutions begin to introduce different products through the mobile money platform. He said such financial intermediation activities will drive many people to access banking services such as loans and interest yielding savings and investments.
The GhIPSS Boss is hopeful both developments will deepen financial inclusion and intermediation in Ghana as well as drive electronic payment to a very high level. He is hopeful that the use of electronic payments will grow organically and soon it will become the norm than the exception in Ghana.
Mr. Hesse admonished merchants and the public to move with the times and not be left behind, adding that, technology was driving efficiency and that, anyone who seeks to be efficient and effective cannot ignore technology.