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The use of GhIPSS instant pay (GIP) services continues to see huge jumps in volume as more people turn to the service. The volume of instant pay transactions between January and March this year, stood at a little over one million (1,007,510) representing a growth of 693.8 percent compared to 126,925 transactions during the same period last year.

GhIPSS Instant Pay is an electronic payment system that enables a customer to transfer money from one bank account to another of a different bank or to a wallet and the transfer is effected instantly. Though instant pay can be accessed from the banking halls, it is mostly available on the various internet and mobile banking platforms of the banks. Many Fintechs also ride on the GIP technology for their money transfer services.

Electronic payment channels have become very important in the wake of the novel corona virus (Covid-19), as cash could be a channel of spreading the disease. Although a full assessment of the impact of Covid-19 on electronic payments is yet to be done, a further analysis of the data from GhIPSS shows a significant increase in GIP transactions in the month of March, when Ghana started recording its positive cases.

According to the figures, while GIP volumes in February this year drop by 7 percent compared to January of the same year, the volume of transactions increased in March by 53.6 percent. This shows that GIP was used many more times in March compared to January and February of 2020, a development attributable to increased use of electronic payments due to Covid-19.Instant Pay has become a preferred form of transfers for many across the world and Ghana has recorded the same trend since GhIPSS introduced it a couple of years ago.The Chief Executive of GhIPSS Archie Hesse explained that an overwhelming majority of GIP transactions involve people moving funds from their bank accounts to mobile money wallet of others or themselves. He added that this trend shows how convenient mobile money wallets have become for many people.  

The challenge however is that many people after moving funds from their bank account to mobile wallets, cash out to make payments. But with the launch of the universal QR code, funds stored in mobile money wallets can be used to make payment, Mr. Hesse further explained. GhIPSS last month launched the universal QR code which enables individuals to pay for goods and services by scanning displayed QR codes with their phones. Users of feature phones can also pay via QR Code by dialling a merchant’s number that will also be displayed at the location. Mr. Hesse is hopeful that GIP will continue to experience growth especially in this era of Covid-19 as more and more people turn to electronic payment channels.

There is continuous growth in the volume of instant pay, emphasising customers’ preference for real time payment. Until recently, payments in Ghana except cash, took at least three days for the recipient to get value. But that has since changed with the introduction of mobile money, express payment services and more importantly the GhIPSS Instant Pay (GIP).

GIP allows customers to transfer or receive money instantly through the banking system, using any of the electronic payment platforms such internet banking or mobile banking. According to the 2019 performance of electronic payment products report released by Ghana Interbank Payment and Settlement Systems (GhIPSS), the volume of GIP based transactions shot up in excess of 1,200 percent from 144,000 in 2018  to 1.9 million last year.

The growth in instant pay volumes has been consistent since it was launched, showing customers preference for real time payments. The Chief Executive of GhIPSS Archie Hesse has described GIP as, “as good as cash but even more secured”, suggesting that customers’ preference would keep growing.

In line with the obvious interest in real time payments, GhIPSS has set out to roll a number of other real time payments this year. Speaking during a recent interaction with the media in Accra, Mr. Hesse said there was going to be enormous focus on real time payment products. He spoke of the planned launch of a universal QR code payment which will ensure customers can use their phones to scan merchants QR codes and make instant payments. Another real time product that GhIPSS has lined up for the year, is christened Proxy Pay. This service will link individual customers’ phone number to a bank account, such that payments can be made instantly by just typing in the phone number instead of the 13 digit account number. Proxy Pay is to ensure easy payments as phone numbers are easy to recall and type. However, for corporate organisations, their bank accounts will be linked to their names, so that one can just type in a company’s name and effect payments electronically.

GhIPSS also intends to launch Request to Pay, which will enable customers of service providers to make payments when they receive bills from their service providers. These bills will be received through SMS text message with options for the customer to approve payment with funds from their bank account These real time payments are expected to create more convenience for customers and ensure security of their payments transactions.